Actually, it does, considering that Waterfall has a secondary effect to flinch. However, sadly it still remains outclssed by Garydos.
Is it really true ? For first, Feraligatr may use Swords Dance (especially with access to Aqua Jet) making it viable and unique enough. If you look for something slower, but more powerful, then you may choose SD Feraligatr over DD Gyarados. And unlike Gyarados it doesn't die to any random electric moves, so you may use it even as a lure to them (while investing in bulk) and let something else sweep in his place. Or just drop Aqua Jet and use him as a wallbreaker, as I admit he has serious 4 moveslot syndrome.
And thanks to Sheer Force (Encourage) Feraligatr may use some moves, which makes him unique enough and let him break through opponents that Gyarados can't. Honestly I need to check if some of those moves are legal with his new ability, so if not, just point it out.
a) Crunch - It's boosted, so it has effective power of 120. It allows you to break through Pokemon like Cresselia (rare, but still), Celebi (main target) or Rankurusu (I'm certain that it survives +1 Waterfall from Gyarados if invested and it may cripple you with T-Wave or just attack for heavy damage). I think we may find few more targets, but IMO those are main ones. Feraligatr has more then enough power to OHKO all of them.
b) Ice Punch - Again, it's boosted making it much stronger then Ice Fang, which Gyarados has. Celebi won't enjoy it, also some of new dragons aren't weak x4 time to ice like most old dragons and Feraligatr is bulky enough to take one heavy hit if invested. Ice Fang may be just too weak in some cases and also many of new (and some old) dragons aren't weak to Stone Edge, which also has shaky 80% accuracy.
c) Boosted Waterfall - If you count bonus from this ability, I may say that Feraligatr at worst (I need to check it to be sure) matches in power Gyarados with his Waterfall. So I wouldn't say it's weaker, because it isn't totally true. And Feraligatr has few additional unique to him attacking options.
d) SuperPower - I know, it's not boosted, but this is another move, which Gyarados would love to get. It's perfect tool to use on Choice Band and... Dragon Dance (no, it's not a joke) to lure the biggest nightmare of bulky waters - Nattorei. You finish off Nattorei and something else finish job (maybe even... Gyarados, something like old Rayquaza/Salamence combo from Gen 4 Ubers tier).
e) STAB Rock Slide - The weakest of those options, but still viable, especially if you need more accurate rock move then Stone Edge and thanks to Sheer Force boost it hits harder then Stone Edge.
Honestly I'm not sure if this is enough to say that Feraligatr isn't outclassed by Gyarados, but as you see it has some advantages and it may work as a perfect bait as it doesn't have any crippling x4 weakness and when invested his bulk may allow you to survive many types of hits. But access to Sheer Force (it allows you to use Dragon Dance in different way then Gyarados), Swords Dance, Bulk (yeah, Gyarados also have it, but without crippling weakness to electric attacks), neutrality to SR and usable speed (it's only 3 points lower then Gyarados and I don't see in this metagame any crucial 80 speed Pokemon, you also outspeed by 1 point Heatran, which is nice). IMO just use it in 'bulk + swords dance' way to lure counters for other teammates in your team or 'double dragon' strategy (like mentioned Gyarados + Feraligatr) or just 'dragon dance' while using Sheer boosted moves. Just my two cents about water crocodile ;). I'll mention later Evo Stone Gligar and Golbat too, but for now that's it ;)
