Critical Analysis: Pirelli & C. (OTCMKTS:PLLIF) versus Westport Fuel Systems (NASDAQ:WPRT)

Pirelli & C. (OTCMKTS:PLLIF) and Westport Fuel Systems (NASDAQ:WPRT) are both consumer cyclical companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

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 company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Pirelli & C. 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
Pirelli & C.	N/A	N/A	N/A	N/A	N/A
Westport Fuel Systems	$325.50 million	0.24	-$49.72 million	($3.05)	-1.50

Pirelli & C. has higher earnings, but lower revenue than Westport Fuel Systems.

Analyst Recommendations

This is a breakdown of recent recommendations for Pirelli & C. and Westport Fuel Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pirelli & C.	0	0	0	0	N/A
Westport Fuel Systems	0	2	2	0	2.50

Westport Fuel Systems has a consensus target price of $14.13, suggesting a potential upside of 207.73%. Given Westport Fuel Systems’ higher possible upside, analysts plainly believe Westport Fuel Systems is more favorable than Pirelli & C..

Profitability

This table compares Pirelli & C. and Westport Fuel Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pirelli & C.	N/A	N/A	N/A
Westport Fuel Systems	-10.18%	-29.81%	-13.57%

Summary

Westport Fuel Systems beats Pirelli & C. on 5 of the 8 factors compared between the two stocks.

About Pirelli & C.

Pirelli & C. S.p.A. manufactures and supplies tires for cars, motorcycles, and bicycles worldwide. It offers car tires under the P ZERO, Cinturato, Scorpion, Sottozero, Pirelli Ice, and Carrier brand names; motorcycle tires under the DIABLO Superbike, DIABLO SUPERCORSA SC, DIABLO ROSSO IV, DIABLO Rain, ANGEL GT, DIABLO ROSSO II, DIABLO Wet, SCORPION MX, SCORPION Pro F.I.M., SCORPION XC, DIABLO SUPERCORSA SP, PHANTOM SPORTSCOMP, DIABLO Rosso IV Corsa, DIABLO Rosso III, ANGEL GT II, NIGHT DRAGON, MT 66 ROUTE, SCORPION Trail II, MT 60 RS, MT 60, SCORPION MT 90 A/T, SCORPION Rally STR, SPORT DEMON, MT 21 Rallycross, MT 43 PRO TRIAL, DIABLO ROSSO Scooter, and ANGEL Scooter brands; motorsport tires under the P ZERO TROFEO R, SOTTOZERO, P7 Corsa, K, KM, RK, rain, and Slick brands; bike tires under the P Zero, Cinturato, and Scorpion brand names; and truck and bus tires. The company also provides Run Flat and Seal Inside specialties that enable cars to continue driving after a puncture; Pirelli Noise Cancelling System for reducing noise by rolling; and Elect, a line of tires for electric vehicles. The company was incorporated in 1872 and is headquartered in Milan, Italy.

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.