Analyzing GATX (GATX) and The Competition

GATX (NYSE:GATX) is one of 158 public companies in the “Trading Companies & Distributors” industry, but how does it contrast to its rivals? We will compare GATX to related businesses based on the strength of its valuation, institutional ownership, analyst recommendations, earnings, profitability, risk and dividends.

Analyst Ratings

This is a breakdown of current ratings and price targets for GATX and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GATX	0	0	4	0	3.00
GATX Competitors	1464	4952	6819	238	2.43

GATX presently has a consensus price target of $219.33, indicating a potential upside of 20.86%. As a group, “Trading Companies & Distributors” companies have a potential upside of 8.43%. Given GATX’s stronger consensus rating and higher probable upside, analysts clearly believe GATX is more favorable than its rivals.

Valuation & Earnings

This table compares GATX and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GATX	$1.74 billion	$333.30 million	16.85
GATX Competitors	$6.62 billion	$360.25 million	33.30

GATX’s rivals have higher revenue and earnings than GATX. GATX is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares GATX and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GATX	17.69%	10.62%	2.16%
GATX Competitors	1.01%	-33.87%	3.50%

Institutional & Insider Ownership

93.1% of GATX shares are held by institutional investors. Comparatively, 51.1% of shares of all “Trading Companies & Distributors” companies are held by institutional investors. 1.9% of GATX shares are held by company insiders. Comparatively, 17.1% of shares of all “Trading Companies & Distributors” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

GATX pays an annual dividend of $2.64 per share and has a dividend yield of 1.5%. GATX pays out 24.5% of its earnings in the form of a dividend. As a group, “Trading Companies & Distributors” companies pay a dividend yield of 2.7% and pay out 34.8% of their earnings in the form of a dividend. GATX has increased its dividend for 15 consecutive years.

Risk & Volatility

GATX has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, GATX’s rivals have a beta of 1.33, indicating that their average share price is 33% more volatile than the S&P 500.

Summary

GATX rivals beat GATX on 8 of the 15 factors compared.

About GATX

GATX Corporation, together its subsidiaries, operates as railcar leasing company in the United States, Canada, Mexico, Europe, and India. It operates through three segments: Rail North America, Rail International, and Portfolio Management. The company leases tank and freight railcars, and locomotives for petroleum, chemical, food/agriculture, and transportation industries. It also offers maintenance services, including the interior cleaning of railcars, routine maintenance and repair of car body and safety appliances, regulatory compliance works, wheelset replacements, interior blast and lining, exterior blast and painting, and car stenciling services. In addition, the company manufactures commercial aircraft jet engines and leases aircraft spare engines; and owns and manages tank containers that are leased to chemical, industrial gas, energy, food, cryogenic and pharmaceutical industries, and tank container operators, as well as provides tank container sourcing, remarketing, and inspection and maintenance services. As of December 31, 2023, it owned and operated a fleet of approximately 148,500 railcars; 493 four-axle and 30 six-axle locomotives; 399 aircraft spare engines; and 23,931 tank containers. GATX Corporation was founded in 1898 and is headquartered in Chicago, Illinois.