Why so much discrepancy?

I am talking about valuations of two companies whose name I will mention at the end of the article. First I would provide comparison of the companies based on their financial statements. Have a look at the following table:

Parameter	Company A	Company B
Market Capitalization	1717 Crore	625 Crore
Price/Book	5.8	1.6
Price/Earnings (TTM)	20.7	12.8
Dividend Yield	0.56%	1.48%
Debt/Equity Ratio	0.24	0.03
Average Sales of five Years	585 Crore	350 Crore
Average Profits of five Years	42 Crore	35 Crore
Price/(Profits of five Years)	41	17.86
Average ROCE of five Years	24.75	31.1
Price/(Net Current Assets)	17.5	1.98

If I tell you that the first company made 4701 units of a product and the second company made 3597 units of the same product during FY2008-09, don't you think the second company is undervalued compared to the valuation of the first company? The name of the first company is Texmaco and the second one is Titagarh Wagons. The product they make is Railway Wagons. Texmaco earned 75% of its total sales from this segment while Titagarh Wagons earned around 95%. Both the companies' future depends on the spending of Indian Railway and now also private sector container transport companies. But according to me, Titagarh Wagons is undervalued by at least 40% compared to Texmaco.

In the field of common stocks, the danger of paying the wrong price is almost as great as that of buying the wrong issue. - Benjamin Graham