Critical Analysis: GATX (NYSE:GATX) & BW LPG (NYSE:BWLP)

BW LPG (NYSE:BWLP) and GATX (NYSE:GATX) are both transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

This table compares BW LPG and GATX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BW LPG	N/A	N/A	N/A
GATX	17.76%	11.98%	2.37%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for BW LPG and GATX, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BW LPG	0	0	0	0	0.00
GATX	0	2	1	0	2.33

GATX has a consensus target price of $138.67, indicating a potential downside of 8.54%. Given GATX’s stronger consensus rating and higher probable upside, analysts plainly believe GATX is more favorable than BW LPG.

Earnings & Valuation

This table compares BW LPG and GATX”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BW LPG	$3.51 billion	0.49	N/A	N/A	N/A
GATX	$1.54 billion	3.49	$259.20 million	$7.48	20.27

GATX has lower revenue, but higher earnings than BW LPG.

Dividends

BW LPG pays an annual dividend of $2.32 per share and has a dividend yield of 17.9%. GATX pays an annual dividend of $2.32 per share and has a dividend yield of 1.5%. GATX pays out 31.0% of its earnings in the form of a dividend. GATX has increased its dividend for 14 consecutive years.

Insider and Institutional Ownership

93.1% of GATX shares are owned by institutional investors. 1.8% of GATX shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

GATX beats BW LPG on 10 of the 13 factors compared between the two stocks.

About BW LPG

BW LPG Limited, an investment holding company, engages in ship owning and chartering activities worldwide. The company operates through Shipping and Product Services segments. The company involved in the transportation of liquefied petroleum gas to oil companies, and trading and utility companies. It also offers integrated liquified petroleum gas (LPG) delivery services and support; wholesale and trade of LPG; and management services. It owns and operates LPG vessels and a fleet of very large gas carriers. The company was formerly known as BW Gas LPG Holding Limited and changed its name to BW LPG Limited in September 2013. BW LPG Limited was founded in 1935 and is headquartered in Singapore.

About GATX

GATX Corporation, together its subsidiaries, operates as railcar leasing company in the United States, Canada, Mexico, Europe, and India. It operates through three segments: Rail North America, Rail International, and Portfolio Management. The company leases tank and freight railcars, and locomotives for petroleum, chemical, food/agriculture, and transportation industries. It also offers maintenance services, including the interior cleaning of railcars, routine maintenance and repair of car body and safety appliances, regulatory compliance works, wheelset replacements, interior blast and lining, exterior blast and painting, and car stenciling services. In addition, the company manufactures commercial aircraft jet engines and leases aircraft spare engines; and owns and manages tank containers that are leased to chemical, industrial gas, energy, food, cryogenic and pharmaceutical industries, and tank container operators, as well as provides tank container sourcing, remarketing, and inspection and maintenance services. As of December 31, 2023, it owned and operated a fleet of approximately 148,500 railcars; 493 four-axle and 30 six-axle locomotives; 399 aircraft spare engines; and 23,931 tank containers. GATX Corporation was founded in 1898 and is headquartered in Chicago, Illinois.