WallStSmart

Freightcar America Inc (RAIL)vsWestinghouse Air Brake Technologies Corp (WAB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Westinghouse Air Brake Technologies Corp generates 2129% more annual revenue ($11.17B vs $500.99M). WAB leads profitability with a 10.5% profit margin vs 7.6%. RAIL appears more attractively valued with a PEG of 0.64. WAB earns a higher WallStSmart Score of 58/100 (C).

RAIL

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 5.0Value: 10.0Quality: 5.0

WAB

Buy

58

out of 100

Grade: C

Growth: 5.3Profit: 6.5Value: 7.3Quality: 6.0
Piotroski: 2/9Altman Z: 1.68
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RAILUndervalued (+74.8%)

Margin of Safety

+74.8%

Fair Value

$51.01

Current Price

$8.16

$42.85 discount

UndervaluedFair: $51.01Overvalued
WABSignificantly Overvalued (-447.9%)

Margin of Safety

-447.9%

Fair Value

$46.44

Current Price

$248.32

$201.88 premium

UndervaluedFair: $46.44Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RAIL2 strengths · Avg: 9.0/10
P/E RatioValuation
7.4x10/10

Attractively priced relative to earnings

PEG RatioValuation
0.648/10

Growing faster than its price suggests

WAB0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

RAIL4 concerns · Avg: 3.0/10
EPS GrowthGrowth
2.1%4/10

2.1% earnings growth

Market CapQuality
$153.78M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
7.6%3/10

7.6% margin — thin

Return on EquityProfitability
-8.8%2/10

ROE of -8.8% — below average capital efficiency

WAB4 concerns · Avg: 3.3/10
P/E RatioValuation
36.0x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.684/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-3.8%2/10

Earnings declined 3.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : RAIL

The strongest argument for RAIL centers on P/E Ratio, PEG Ratio. PEG of 0.64 suggests the stock is reasonably priced for its growth.

Bull Case : WAB

Revenue growth of 14.8% demonstrates continued momentum. PEG of 1.37 suggests the stock is reasonably priced for its growth.

Bear Case : RAIL

The primary concerns for RAIL are EPS Growth, Market Cap, Profit Margin.

Bear Case : WAB

The primary concerns for WAB are P/E Ratio, Altman Z-Score, Piotroski F-Score.

Key Dynamics to Monitor

RAIL carries more volatility with a beta of 1.51 — expect wider price swings.

WAB is growing revenue faster at 14.8% — sustainability is the question.

WAB generates stronger free cash flow (870M), providing more financial flexibility.

Monitor RAILROADS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

WAB scores higher overall (58/100 vs 53/100) and 14.8% revenue growth. RAIL offers better value entry with a 74.8% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Freightcar America Inc

INDUSTRIALS · RAILROADS · USA

FreightCar America, Inc. designs, manufactures, and sells railroad cars and railroad components for the transportation of bulk goods and containerized cargo products primarily in North America. The company is headquartered in Chicago, Illinois.

Westinghouse Air Brake Technologies Corp

INDUSTRIALS · RAILROADS · USA

Wabtec Corporation (derived from Westinghouse Air Brake Technologies Corporation) is an American company formed by the merger of the Westinghouse Air Brake Company (WABCO) and MotivePower Industries Corporation in 1999. It is headquartered in Pittsburgh, Pennsylvania.

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