Financial Analysis: JBDI (NASDAQ:JBDI) & GATX (NYSE:GATX)

GATX (NYSE:GATX) and JBDI (NASDAQ:JBDI) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GATX	17.94%	10.43%	2.12%
JBDI	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for GATX and JBDI, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GATX	0	0	4	0	3.00
JBDI	1	0	0	0	1.00

GATX presently has a consensus price target of $219.00, suggesting a potential upside of 22.90%. Given GATX’s stronger consensus rating and higher probable upside, equities analysts plainly believe GATX is more favorable than JBDI.

Valuation & Earnings

This table compares GATX and JBDI”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GATX	$1.74 billion	3.61	$333.30 million	$10.10	17.64
JBDI	$8.44 million	1.54	-$2.72 million	N/A	N/A

GATX has higher revenue and earnings than JBDI.

Insider and Institutional Ownership

93.1% of GATX shares are held by institutional investors. 1.9% of GATX shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

GATX has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, JBDI has a beta of -1.12, suggesting that its stock price is 212% less volatile than the S&P 500.

Summary

GATX beats JBDI on 12 of the 12 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 JBDI

JBDI Holdings Limited engages in the trading of reconditioned and recycling containers in Singapore and the Southeast Asia region. The company offers reconditioning and recycling drums, including open top drums, metal drums, plastic drums, plastic carboys, and intermediate bulk containers, as well as new drums, and collects waste drums and related products. It serves solvent, chemical, petroleum, and edible product oil industries. The company was founded in 1983 and is based in Singapore. JBDI Holdings Limited operates as a subsidiary of E U Holdings Pte. Ltd.