Omega Flex (NASDAQ:OFLX – Get Free Report) and Westport Fuel Systems (NASDAQ:WPRT – Get Free Report) are both small-cap industrials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.
Profitability
This table compares Omega Flex and Westport Fuel Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Omega Flex | 10.73% | 12.80% | 10.34% |
| Westport Fuel Systems | -493.15% | -51.88% | -37.23% |
Institutional & Insider Ownership
36.1% of Omega Flex shares are held by institutional investors. Comparatively, 21.3% of Westport Fuel Systems shares are held by institutional investors. 65.2% of Omega Flex shares are held by insiders. Comparatively, 0.8% of Westport Fuel Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Omega Flex and Westport Fuel Systems, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Omega Flex | 1 | 0 | 0 | 0 | 1.00 |
| Westport Fuel Systems | 1 | 2 | 1 | 0 | 2.00 |
Westport Fuel Systems has a consensus price target of $1.82, indicating a potential downside of 19.96%. Given Westport Fuel Systems’ stronger consensus rating and higher possible upside, analysts clearly believe Westport Fuel Systems is more favorable than Omega Flex.
Valuation and Earnings
This table compares Omega Flex and Westport Fuel Systems”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Omega Flex | $98.30 million | 2.50 | $14.83 million | $1.05 | 23.19 |
| Westport Fuel Systems | $23.32 million | 1.70 | -$61.63 million | ($2.41) | -0.95 |
Omega Flex has higher revenue and earnings than Westport Fuel Systems. Westport Fuel Systems is trading at a lower price-to-earnings ratio than Omega Flex, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Omega Flex has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, Westport Fuel Systems has a beta of 2.12, indicating that its share price is 112% more volatile than the S&P 500.
Summary
Omega Flex beats Westport Fuel Systems on 10 of the 14 factors compared between the two stocks.
About Omega Flex
Omega Flex, Inc., together with its subsidiaries, manufactures and sells flexible metal hoses and accessories in North America and internationally. It offers flexible gas piping for use in residential and commercial buildings; fittings; containment pining; and corrugated medical tubing for use in hospitals, ambulatory care centers, dental, physician and veterinary clinics, laboratories, and other facilities. The company sells its products under the TracPipe, CounterStrike, AutoSnap, AutoFlare, DoubleTrac, DEF-Trac, and MediTrac brand names. It serves various markets, including construction, manufacturing, transportation, petrochemical, pharmaceutical, and other industries. The company sells its products through independent sales representatives, distributors, fabricating distributors, wholesalers, original equipment manufacturers, and direct sales, as well as through its website. The company was formerly known as Tofle America, Inc. and changed its name to Omega Flex, Inc. in 1996. Omega Flex, Inc. was incorporated in 1975 and is based in Exton, Pennsylvania.
About Westport Fuel Systems
Westport Fuel Systems Inc. engages in the engineering, manufacturing, and supplying alternative fuel systems and components for use in transportation applications in Europe, Asia, North America, South America, and internationally. The company operates through two segments, Original Equipment Manufacturers and Independent Aftermarket. It offers alternative fuel systems and components, such as liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), renewable natural gas or biomethane, and hydrogen; and pressure regulators, injectors, electronic control units, valves and filters, complete bi-fuel, mono-fuel and dual-fuel LPG and natural gas conversion kits and high-pressure hydrogen components. The company provides Westport’s LNG high pressure direct injection 2.0 fuel system and bi-fuel products; offers turnkey solutions covering all process phases, including prototyping, development, calibration, validation, homologation, vehicle conversion and logistic services, as well as systems for diesel-powered vehicles; and supplies hydrogen fuel system components for light, medium, and heavy-duty applications. It offers its products under the AFS, BRC, Emer, GFI, HPDI, Stako, Prins, Zavoli, OMVL, TA Gas Technology, Vialle, and Valtek brands. The company was formerly known as Westport Innovations Inc. and changed its name to Westport Fuel Systems Inc. in June 2016. Westport Fuel Systems Inc. was incorporated in 1995 and is headquartered in Vancouver, Canada.
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