General Electric vs Westinghouse Air Brake Technologies Which Is Superior?

General Electric (GE) and Westinghouse Air Brake Technologies Corporation (Wabtec) are two prominent companies in the industrial sector that have attracted the attention of investors looking to diversify their portfolios. GE, a multinational conglomerate, has a long history of innovative technology and manufacturing excellence, while Wabtec specializes in providing equipment and services for the transportation industry. Both companies have experienced fluctuations in their stock prices in recent years, making them popular choices for investors seeking potential growth opportunities in the ever-changing market.

General Electric or Westinghouse Air Brake Technologies?

When comparing General Electric and Westinghouse Air Brake Technologies, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between General Electric and Westinghouse Air Brake Technologies.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. General Electric has a dividend yield of 0.55%, while Westinghouse Air Brake Technologies has a dividend yield of 0.4%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. General Electric reports a 5-year dividend growth of -2.87% year and a payout ratio of 12.65%. On the other hand, Westinghouse Air Brake Technologies reports a 5-year dividend growth of 7.21% year and a payout ratio of 12.94%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with General Electric P/E ratio at 29.05 and Westinghouse Air Brake Technologies's P/E ratio at 32.70. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. General Electric P/B ratio is 9.61 while Westinghouse Air Brake Technologies's P/B ratio is 3.38.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, General Electric has seen a 5-year revenue growth of -0.44%, while Westinghouse Air Brake Technologies's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with General Electric's ROE at 26.39% and Westinghouse Air Brake Technologies's ROE at 10.16%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $165.54 for General Electric and $199.31 for Westinghouse Air Brake Technologies. Over the past year, General Electric's prices ranged from $97.23 to $194.80, with a yearly change of 100.35%. Westinghouse Air Brake Technologies's prices fluctuated between $120.89 and $207.51, with a yearly change of 71.65%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.