Critical Review: Wabtec (NYSE:WAB) versus TOMI Environmental Solutions (NASDAQ:TOMZ)

TOMI Environmental Solutions (NASDAQ:TOMZ) and Wabtec (NYSE:WAB) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Profitability

This table compares TOMI Environmental Solutions and Wabtec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TOMI Environmental Solutions	-49.77%	-326.81%	-44.61%
Wabtec	11.20%	15.72%	7.72%

Risk & Volatility

TOMI Environmental Solutions has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500. Comparatively, Wabtec has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for TOMI Environmental Solutions and Wabtec, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TOMI Environmental Solutions	1	0	1	0	2.00
Wabtec	0	2	9	1	2.92

TOMI Environmental Solutions currently has a consensus price target of $7.00, suggesting a potential upside of 391.23%. Wabtec has a consensus price target of $320.18, suggesting a potential upside of 15.24%. Given TOMI Environmental Solutions’ higher possible upside, equities analysts plainly believe TOMI Environmental Solutions is more favorable than Wabtec.

Insider & Institutional Ownership

4.8% of TOMI Environmental Solutions shares are held by institutional investors. Comparatively, 91.7% of Wabtec shares are held by institutional investors. 20.2% of TOMI Environmental Solutions shares are held by insiders. Comparatively, 0.6% of Wabtec shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares TOMI Environmental Solutions and Wabtec”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TOMI Environmental Solutions	$5.64 million	2.06	-$3.75 million	($0.50)	-2.85
Wabtec	$11.17 billion	4.18	$1.17 billion	$8.05	34.51

Wabtec has higher revenue and earnings than TOMI Environmental Solutions. TOMI Environmental Solutions is trading at a lower price-to-earnings ratio than Wabtec, indicating that it is currently the more affordable of the two stocks.

Summary

Wabtec beats TOMI Environmental Solutions on 12 of the 15 factors compared between the two stocks.

About TOMI Environmental Solutions

TOMI Environmental Solutions, Inc., a bacteria decontamination and infectious disease control company, engages in the provision of environmental solutions for indoor air and surface disinfection and decontamination in the United States and internationally. The company’s disinfection solutions include SteraPak portable disinfection systems, SteraMist select surface units, SteraMist environment systems, SteraMist total disinfection carts, SteraMist transport units, NV+ fogging disinfection and decontamination systems, SteraMist custom engineered systems, SteraMist Hybrid disinfection systems, SteraMist integrated systems, Stainless Steel 90-Degree applicators, SteraMist plasma decontamination chambers, and iHP Corporate Service Decontamination, which provides full room, equipment, facility, and emergency disinfection and decontamination services. It also manufactures, sells, services, and licenses SteraMist Binary Ionization Technology, a hydrogen peroxide-based mist and fog. The company’s products and services are used in hospitals and medical facilities, bio-safety labs, pharmaceutical facilities, meat and produce processing facilities, universities and research facilities, vivarium labs, and other service industries, including cruise ships, office buildings, hotel and motel rooms, schools, restaurants, military barracks, police and fire departments, prisons, and athletic facilities; and single-family homes and multi-unit residences. TOMI Environmental Solutions, Inc. was incorporated in 1979 and is headquartered in Frederick, Maryland.

About Wabtec

Westinghouse Air Brake Technologies Corporation, together with its subsidiaries, provides technology-based locomotives, equipment, systems, and services for the freight rail and passenger transit industries worldwide. It offers diesel-electric, battery, and liquid natural gas-powered locomotives; engines, electric motors, and propulsion systems; and marine and mining products. The company also offers positive train control equipment; pneumatic braking products; railway electronics; signal design and engineering services; distributed locomotive power, train cruise controls, and train remote controls; industrial/mobile Internet of Things hardware and software, edge-to-cloud, on and off-board analytics and rules, and asset performance management solutions; rail and shipper transportation management, and port visibility and optimization solutions; and network optimization solutions. In addition, it provides freight car trucks, braking equipment, and related components; air compressors and dryers; heat transfer components and systems; track and switch products; new commuter and switcher locomotives; and turbochargers. Further, the company offers freight locomotive overhauls, modernizations, and refurbishment services; locomotive and car maintenance; transit locomotive and car overhaul; unit exchange of locomotive components; and maintenance of way equipment and services. Additionally, it provides railway and freight braking equipment and related components; friction products, such as brake shoes, discs, and pads; heating, ventilation, and air conditioning equipment; access and platform screen doors; pantographs; auxiliary power converter and battery chargers; passenger information systems and closed-circuit television; signaling and railway electric relays; and doors, window assemblies, accessibility lifts, ramps, and electric charging solutions for buses. The company was founded in 1869 and is headquartered in Pittsburgh, Pennsylvania.