Critical Contrast: ALD (OTCMKTS:ALLDF) and GATX (NYSE:GATX)

GATX (NYSE:GATX) and ALD (OTCMKTS:ALLDF) are both transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Profitability

This table compares GATX and ALD’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GATX	18.37%	11.81%	2.42%
ALD	N/A	N/A	N/A

Valuation and Earnings

This table compares GATX and ALD’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GATX	$1.41 billion	3.20	$259.20 million	$7.15	17.75
ALD	N/A	N/A	N/A	N/A	N/A

GATX has higher revenue and earnings than ALD.

Analyst Recommendations

This is a breakdown of current ratings and target prices for GATX and ALD, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GATX	0	2	1	0	2.33
ALD	0	0	0	0	N/A

GATX currently has a consensus target price of $134.50, indicating a potential upside of 5.98%. Given GATX’s higher possible upside, research analysts plainly believe GATX is more favorable than ALD.

Insider and Institutional Ownership

93.1% of GATX shares are owned by institutional investors. 2.0% of GATX shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

GATX beats ALD on 8 of the 8 factors compared between the two stocks.

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.

About ALD

ALD S.A. provides service leasing and vehicle fleet management services. Its products and services include full service leasing, fleet management, outsourcing solutions, and sale and lease back; fleet consultancy; and tools and services for fleet managers and drivers. The company is also involved in trading used cars and light commercial vehicles, and the retail sale of vehicles. The company operates in Western Europe, Central and Eastern Europe, Northern Europe, South America, Africa, and Asia. ALD S.A. was founded in 1946 and is based in Rueil-Malmaison, France. ALD S.A. operates as a subsidiary of Société Générale Société anonyme.