Critical Survey: Westport Fuel Systems (NASDAQ:WPRT) versus Halfords Group (OTCMKTS:HLFDY)

Westport Fuel Systems (NASDAQ:WPRT) and Halfords Group (OTCMKTS:HLFDY) are both small-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Profitability

This table compares Westport Fuel Systems and Halfords Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Westport Fuel Systems	-68.55%	-37.38%	-21.60%
Halfords Group	N/A	N/A	N/A

Earnings & Valuation

This table compares Westport Fuel Systems and Halfords Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westport Fuel Systems	$23.32 million	1.48	-$61.63 million	($3.75)	-0.53
Halfords Group	$2.19 billion	0.17	-$42.87 million	N/A	N/A

Halfords Group has higher revenue and earnings than Westport Fuel Systems.

Risk and Volatility

Westport Fuel Systems has a beta of 2.14, meaning that its share price is 114% more volatile than the S&P 500. Comparatively, Halfords Group has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Insider & Institutional Ownership

21.3% of Westport Fuel Systems shares are held by institutional investors. 0.8% of Westport Fuel Systems shares are held by 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Westport Fuel Systems and Halfords Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westport Fuel Systems	1	2	1	0	2.00
Halfords Group	0	0	0	0	0.00

Westport Fuel Systems presently has a consensus price target of $4.38, suggesting a potential upside of 119.85%. Given Westport Fuel Systems’ stronger consensus rating and higher possible upside, analysts clearly believe Westport Fuel Systems is more favorable than Halfords Group.

Summary

Westport Fuel Systems beats Halfords Group on 7 of the 12 factors compared between the two stocks.

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.

About Halfords Group

Halfords Group plc, through its subsidiaries, provides motoring and cycling products and services in the United Kingdom and the Republic of Ireland. The company operates through two segments, Retail and Car Servicing. The Retail segment is involved in the retail of automotive, leisure, cycling products and accessories, auto parts, and accessories through its stores and online. The Car Servicing segment provides car servicing and repair services from garages and mobile vans. The company also provides software as a service. Halfords Group plc was founded in 1892 and is based in Redditch, the United Kingdom.