Westinghouse Air Brake Technologies vs General Electric

Westinghouse Air Brake Technologies Corporation (WABTEC) and General Electric (GE) are two major players in the transportation industry, with a focus on rail equipment and services. While both companies operate in similar sectors, they have distinct business strategies and financial performance. WABTEC has a strong focus on innovation and technological advancements in braking systems, while GE has a more diversified portfolio across multiple industries. Investors should consider the unique strengths and weaknesses of each company before making investment decisions.

Westinghouse Air Brake Technologies or General Electric?

When comparing Westinghouse Air Brake Technologies and General Electric, 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 Westinghouse Air Brake Technologies and General Electric.

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. Westinghouse Air Brake Technologies has a dividend yield of 0.41%, while General Electric has a dividend yield of 0.48%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Westinghouse Air Brake Technologies reports a 5-year dividend growth of 7.21% year and a payout ratio of 12.99%. On the other hand, General Electric reports a 5-year dividend growth of -2.87% year and a payout ratio of 13.35%.

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 Westinghouse Air Brake Technologies P/E ratio at 32.33 and General Electric's P/E ratio at 43.76. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Westinghouse Air Brake Technologies P/B ratio is 3.13 while General Electric's P/B ratio is 11.16.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Westinghouse Air Brake Technologies has seen a 5-year revenue growth of 0.19%, while General Electric's is -0.44%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Westinghouse Air Brake Technologies's ROE at 9.73% and General Electric's ROE at 18.16%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $187.13 for Westinghouse Air Brake Technologies and $189.76 for General Electric. Over the past year, Westinghouse Air Brake Technologies's prices ranged from $98.70 to $189.91, with a yearly change of 92.42%. General Electric's prices fluctuated between $84.22 and $194.33, with a yearly change of 130.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.