WallStSmart

Howmet Aerospace Inc (HWM)vsFreightcar America Inc (RAIL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Howmet Aerospace Inc generates 1547% more annual revenue ($8.25B vs $500.99M). HWM leads profitability with a 18.3% profit margin vs 7.6%. RAIL appears more attractively valued with a PEG of 0.64. HWM earns a higher WallStSmart Score of 69/100 (B-).

HWM

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 9.0Value: 5.0Quality: 5.0

RAIL

Buy

53

out of 100

Grade: C-

Growth: 6.7Profit: 5.0Value: 9.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for HWM.

RAILUndervalued (+80.0%)

Margin of Safety

+80.0%

Fair Value

$64.35

Current Price

$8.24

$56.11 discount

UndervaluedFair: $64.35Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HWM5 strengths · Avg: 8.6/10
Return on EquityProfitability
30.4%10/10

Every $100 of equity generates 30 in profit

Market CapQuality
$94.83B9/10

Large-cap with strong market position

PEG RatioValuation
0.808/10

Growing faster than its price suggests

Operating MarginProfitability
26.3%8/10

Strong operational efficiency at 26.3%

EPS GrowthGrowth
20.3%8/10

Earnings expanding 20.3% YoY

RAIL3 strengths · Avg: 9.3/10
P/E RatioValuation
8.0x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
207.9%10/10

Earnings expanding 207.9% YoY

PEG RatioValuation
0.648/10

Growing faster than its price suggests

Areas to Watch

HWM2 concerns · Avg: 3.0/10
Price/BookValuation
18.2x4/10

Trading at 18.2x book value

P/E RatioValuation
63.8x2/10

Premium valuation, high expectations priced in

RAIL4 concerns · Avg: 2.5/10
Market CapQuality
$163.89M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
7.6%3/10

7.6% margin — thin

Return on EquityProfitability
-8.8%2/10

ROE of -8.8% — below average capital efficiency

Revenue GrowthGrowth
-8.8%2/10

Revenue declined 8.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : HWM

The strongest argument for HWM centers on Return on Equity, Market Cap, PEG Ratio. Profitability is solid with margins at 18.3% and operating margin at 26.3%. Revenue growth of 14.6% demonstrates continued momentum.

Bull Case : RAIL

The strongest argument for RAIL centers on P/E Ratio, EPS Growth, PEG Ratio. PEG of 0.64 suggests the stock is reasonably priced for its growth.

Bear Case : HWM

The primary concerns for HWM are Price/Book, P/E Ratio. A P/E of 63.8x leaves little room for execution misses.

Bear Case : RAIL

The primary concerns for RAIL are Market Cap, Profit Margin, Return on Equity.

Key Dynamics to Monitor

HWM profiles as a mature stock while RAIL is a value play — different risk/reward profiles.

RAIL carries more volatility with a beta of 1.71 — expect wider price swings.

HWM is growing revenue faster at 14.6% — sustainability is the question.

HWM generates stronger free cash flow (530M), providing more financial flexibility.

Bottom Line

HWM scores higher overall (69/100 vs 53/100), backed by strong 18.3% margins and 14.6% revenue growth. RAIL offers better value entry with a 80.0% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Howmet Aerospace Inc

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Howmet Aerospace Inc. is an American aerospace company based in Pittsburgh, Pennsylvania. The company manufactures components for jet engines, fasteners and titanium structures for aerospace applications, and forged aluminum wheels for heavy trucks.

Freightcar America Inc

INDUSTRIALS · RAILROADS · USA

FreightCar America, Inc. designs, manufactures, and sells railroad cars and railroad components for the transportation of bulk goods and containerized cargo products primarily in North America. The company is headquartered in Chicago, Illinois.

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