RAIL
FreightCar America, Inc.
Railroads
Market Cap$254M
5Y Perf.+565.0%
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Stock Comparison
RAIL vs WAB
Revenue, margins, valuation, and 5-year total return — side by side.
WAB
Westinghouse Air Brake Technologies Corporation
Railroads
Market Cap$45.09B
5Y Perf.+335.1%
RAIL vs WAB — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | RAIL | WAB |
|---|---|---|
| Industry | Railroads | Railroads |
| Market Cap | $254M | $45.09B |
| Revenue (TTM) | $469M | $11.51B |
| Net Income (TTM) | $29M | $1.21B |
| Gross Margin | 14.8% | 33.8% |
| Operating Margin | 6.3% | 16.1% |
| Forward P/E | 16.3x | 25.0x |
| Total Debt | $152M | $5.54B |
| Cash & Equiv. | $64M | $789M |
RAIL vs WAB — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
RAIL
WAB
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| FreightCar America,… (RAIL) | 100 | 665.0 | +565.0% |
| Westinghouse Air Br… (WAB) | 100 | 435.1 | +335.1% |
Price return only. Dividends and distributions are not included.
Quick Verdict: RAIL vs WAB
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: WAB leads in 5 of 7 categories, making it the strongest pick for growth and revenue expansion and profitability and margin quality. FreightCar America, Inc. is the stronger pick specifically for valuation and capital efficiency and operational efficiency and capital deployment. As sector peers, any of these can serve as alternatives in the same allocation.
RAIL
FreightCar America, Inc.
The Growth Play
RAIL is the clearest fit if your priority is growth exposure.
- Rev growth -10.4%, EPS growth 134.9%, 3Y rev CAGR 11.2%
- Lower P/E (16.3x vs 25.0x)
- 9.4% ROA vs WAB's 5.6%
Best for: growth exposure
WAB
Westinghouse Air Brake Technologies Corporation
The Income Pick
WAB carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 6 yrs, beta 1.11, yield 0.4%
- 247.1% 10Y total return vs RAIL's -37.0%
- Lower volatility, beta 1.11, Low D/E 49.5%, current ratio 1.11x
Best for: income & stability and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | WAB | 7.5% revenue growth vs RAIL's -10.4% |
| Value | RAIL | Lower P/E (16.3x vs 25.0x) |
| Quality / Margins | WAB | 10.5% margin vs RAIL's 6.2% |
| Stability / Safety | WAB | Beta 1.11 vs RAIL's 2.06 |
| Dividends | WAB | 0.4% yield; 6-year raise streak; the other pay no meaningful dividend |
| Momentum (1Y) | WAB | +40.6% vs RAIL's +30.8% |
| Efficiency (ROA) | RAIL | 9.4% ROA vs WAB's 5.6% |
RAIL vs WAB — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
RAIL vs WAB — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLWABLAGGINGRAIL
RAILFreightCar America, I…
2leads
WABWestinghouse Air Brak…
4leads
6 Total Categories
CATEGORYLEADERvs RAILMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
WAB6/6
Valuation MetricsMultiples, price ratios, and targets
RAIL5/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
RAIL5/6
Total Returns1Y, 3Y, 5Y total returns with dividends
WAB4/6
Risk & VolatilityBeta, volatility, and downside exposure
WAB2/2
Analyst OutlookRatings, price targets, and dividends
WAB1/1
Income & Cash Flow (Last 12 Months)
WAB leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
WAB is the larger business by revenue, generating $11.5B annually — 24.5x RAIL's $469M. Profitability is closely matched — net margins range from 10.5% (WAB) to 6.2% (RAIL). On growth, WAB holds the edge at +13.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | RAILFreightCar Americ… | WABWestinghouse Air … |
|---|---|---|
| RevenueTrailing 12 months | $469M | $11.5B |
| EBITDAEarnings before interest/tax | $34M | $2.3B |
| Net IncomeAfter-tax profit | $29M | $1.2B |
| Free Cash FlowCash after capex | $14M | $1.6B |
| Gross MarginGross profit ÷ Revenue | +14.8% | +33.8% |
| Operating MarginEBIT ÷ Revenue | +6.3% | +16.1% |
| Net MarginNet income ÷ Revenue | +6.2% | +10.5% |
| FCF MarginFCF ÷ Revenue | +3.1% | +14.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | -33.2% | +13.0% |
| EPS Growth (YoY)Latest quarter vs prior year | -24.3% | +12.8% |
WAB leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
RAIL leads this category, winning 5 of 5 comparable metrics.
Valuation Metrics
At 7.3x trailing earnings, RAIL trades at a 81% valuation discount to WAB's 38.9x P/E. On an enterprise value basis, RAIL's 8.5x EV/EBITDA is more attractive than WAB's 21.0x.
| Metric | RAILFreightCar Americ… | WABWestinghouse Air … |
|---|---|---|
| Market CapShares × price | $254M | $45.1B |
| Enterprise ValueMkt cap + debt − cash | $342M | $49.8B |
| Trailing P/EPrice ÷ TTM EPS | 7.32x | 38.90x |
| Forward P/EPrice ÷ next-FY EPS est. | 16.29x | 25.05x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.51x |
| EV / EBITDAEnterprise value multiple | 8.52x | 21.03x |
| Price / SalesMarket cap ÷ Revenue | 0.51x | 4.04x |
| Price / BookPrice ÷ Book value/share | — | 4.06x |
| Price / FCFMarket cap ÷ FCF | 8.08x | 30.08x |
RAIL leads this category, winning 5 of 5 comparable metrics.
Profitability & Efficiency
RAIL leads this category, winning 5 of 6 comparable metrics.
Profitability & Efficiency
On the Piotroski fundamental quality scale (0–9), RAIL scores 6/9 vs WAB's 5/9, reflecting solid financial health.
| Metric | RAILFreightCar Americ… | WABWestinghouse Air … |
|---|---|---|
| ROE (TTM)Return on equity | — | +10.9% |
| ROA (TTM)Return on assets | +9.4% | +5.6% |
| ROICReturn on invested capital | — | +9.6% |
| ROCEReturn on capital employed | +19.5% | +11.7% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | — | 0.50x |
| Net DebtTotal debt minus cash | $88M | $4.8B |
| Cash & Equiv.Liquid assets | $64M | $789M |
| Total DebtShort + long-term debt | $152M | $5.5B |
| Interest CoverageEBIT ÷ Interest expense | -0.57x | 7.41x |
RAIL leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
WAB leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in WAB five years ago would be worth $32,899 today (with dividends reinvested), compared to $12,488 for RAIL. Over the past 12 months, WAB leads with a +40.6% total return vs RAIL's +30.8%. The 3-year compound annual growth rate (CAGR) favors RAIL at 40.7% vs WAB's 39.3% — a key indicator of consistent wealth creation.
| Metric | RAILFreightCar Americ… | WABWestinghouse Air … |
|---|---|---|
| YTD ReturnYear-to-date | -27.0% | +23.0% |
| 1-Year ReturnPast 12 months | +30.8% | +40.6% |
| 3-Year ReturnCumulative with dividends | +178.5% | +170.1% |
| 5-Year ReturnCumulative with dividends | +24.9% | +229.0% |
| 10-Year ReturnCumulative with dividends | -37.0% | +247.1% |
| CAGR (3Y)Annualised 3-year return | +40.7% | +39.3% |
WAB leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
WAB leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
WAB is the less volatile stock with a 1.11 beta — it tends to amplify market swings less than RAIL's 2.06 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. WAB currently trades 96.3% from its 52-week high vs RAIL's 53.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | RAILFreightCar Americ… | WABWestinghouse Air … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.06x | 1.11x |
| 52-Week HighHighest price in past year | $14.90 | $275.84 |
| 52-Week LowLowest price in past year | $6.02 | $184.26 |
| % of 52W HighCurrent price vs 52-week peak | +53.6% | +96.3% |
| RSI (14)Momentum oscillator 0–100 | 36.1 | 58.7 |
| Avg Volume (50D)Average daily shares traded | 198K | 905K |
WAB leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
WAB leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates RAIL as "Hold" and WAB as "Buy". WAB is the only dividend payer here at 0.38% yield — a key consideration for income-focused portfolios.
| Metric | RAILFreightCar Americ… | WABWestinghouse Air … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | — | $291.00 |
| # AnalystsCovering analysts | 13 | 34 |
| Dividend YieldAnnual dividend ÷ price | — | +0.4% |
| Dividend StreakConsecutive years of raises | 1 | 6 |
| Dividend / ShareAnnual DPS | — | $1.01 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.5% |
WAB leads this category, winning 1 of 1 comparable metric.
Key Takeaway
WAB leads in 4 of 6 categories (Income & Cash Flow, Total Returns). RAIL leads in 2 (Valuation Metrics, Profitability & Efficiency).
Best OverallWestinghouse Air Brake Tech… (WAB)Leads 4 of 6 categories
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RAIL vs WAB: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is RAIL or WAB a better buy right now?
For growth investors, Westinghouse Air Brake Technologies Corporation (WAB) is the stronger pick with 7.
5% revenue growth year-over-year, versus -10. 4% for FreightCar America, Inc. (RAIL). FreightCar America, Inc. (RAIL) offers the better valuation at 7. 3x trailing P/E (16. 3x forward), making it the more compelling value choice. Analysts rate Westinghouse Air Brake Technologies Corporation (WAB) a "Buy" — based on 34 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — RAIL or WAB?
On trailing P/E, FreightCar America, Inc.
(RAIL) is the cheapest at 7. 3x versus Westinghouse Air Brake Technologies Corporation at 38. 9x. On forward P/E, FreightCar America, Inc. is actually cheaper at 16. 3x.
03Which is the better long-term investment — RAIL or WAB?
Over the past 5 years, Westinghouse Air Brake Technologies Corporation (WAB) delivered a total return of +229.
0%, compared to +24. 9% for FreightCar America, Inc. (RAIL). Over 10 years, the gap is even starker: WAB returned +247. 1% versus RAIL's -37. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — RAIL or WAB?
By beta (market sensitivity over 5 years), Westinghouse Air Brake Technologies Corporation (WAB) is the lower-risk stock at 1.
11β versus FreightCar America, Inc. 's 2. 06β — meaning RAIL is approximately 86% more volatile than WAB relative to the S&P 500.
05Which is growing faster — RAIL or WAB?
By revenue growth (latest reported year), Westinghouse Air Brake Technologies Corporation (WAB) is pulling ahead at 7.
5% versus -10. 4% for FreightCar America, Inc. (RAIL). On earnings-per-share growth, the picture is similar: FreightCar America, Inc. grew EPS 134. 9% year-over-year, compared to 13. 1% for Westinghouse Air Brake Technologies Corporation. Over a 3-year CAGR, RAIL leads at 11. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — RAIL or WAB?
Westinghouse Air Brake Technologies Corporation (WAB) is the more profitable company, earning 10.
5% net margin versus 7. 6% for FreightCar America, Inc. — meaning it keeps 10. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WAB leads at 16. 7% versus 6. 8% for RAIL. At the gross margin level — before operating expenses — WAB leads at 31. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is RAIL or WAB more undervalued right now?
On forward earnings alone, FreightCar America, Inc.
(RAIL) trades at 16. 3x forward P/E versus 25. 0x for Westinghouse Air Brake Technologies Corporation — 8. 8x cheaper on a one-year earnings basis.
08Which pays a better dividend — RAIL or WAB?
In this comparison, WAB (0.
4% yield) pays a dividend. RAIL does not pay a meaningful dividend and should not be held primarily for income.
09Is RAIL or WAB better for a retirement portfolio?
For long-horizon retirement investors, Westinghouse Air Brake Technologies Corporation (WAB) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.
11), +247. 1% 10Y return). FreightCar America, Inc. (RAIL) carries a higher beta of 2. 06 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (WAB: +247. 1%, RAIL: -37. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between RAIL and WAB?
Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: RAIL is a small-cap deep-value stock; WAB is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(RAIL: -33.2% · WAB: 13.0%)Net Margin>
%
(RAIL: 6.2% · WAB: 10.5%)P/E Ratio<
x
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