Power Solutions International (NASDAQ:PSIX – Get Free Report) and Nextpower (NASDAQ:NXT – Get Free Report) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.
Risk & Volatility
Power Solutions International has a beta of 2.11, meaning that its stock price is 111% more volatile than the S&P 500. Comparatively, Nextpower has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500.
Insider & Institutional Ownership
22.3% of Power Solutions International shares are held by institutional investors. Comparatively, 67.4% of Nextpower shares are held by institutional investors. 0.3% of Power Solutions International shares are held by insiders. Comparatively, 0.8% of Nextpower shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Power Solutions International | 0 | 1 | 1 | 1 | 3.00 |
| Nextpower | 0 | 4 | 23 | 1 | 2.89 |
Power Solutions International currently has a consensus price target of $99.95, suggesting a potential upside of 117.01%. Nextpower has a consensus price target of $143.19, suggesting a potential upside of 83.74%. Given Power Solutions International’s stronger consensus rating and higher probable upside, equities analysts clearly believe Power Solutions International is more favorable than Nextpower.
Earnings and Valuation
This table compares Power Solutions International and Nextpower”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Power Solutions International | $722.41 million | 1.47 | $113.99 million | $2.95 | 15.61 |
| Nextpower | $3.56 billion | 3.32 | $585.88 million | $3.86 | 20.19 |
Nextpower has higher revenue and earnings than Power Solutions International. Power Solutions International is trading at a lower price-to-earnings ratio than Nextpower, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Power Solutions International and Nextpower’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Power Solutions International | 10.03% | 37.73% | 15.58% |
| Nextpower | 16.36% | 26.29% | 15.02% |
Summary
Nextpower beats Power Solutions International on 9 of the 14 factors compared between the two stocks.
About Power Solutions International
Power Solutions International, Inc. engages in the design, manufacture, and trade of power systems and electrical power generation equipment. The firm provides integrated turnkey solutions to global original equipment manufacturers and end-user customers within the energy, industrial, and transportation end markets. The company was founded by Gary S. Winemaster, Kenneth J. Winemaster, and William Winemaster in February 1985 and is headquartered in Wood Dale, IL.
About Nextpower
Nextpower, formerly known as Nextracker, an energy solutions company, provides solar trackers and software solutions for utility-scale and distributed generation solar projects in the United States and internationally. The company offers tracking solutions, which includes NX Horizon, a solar tracking solution; and NX Horizon-XTR, a terrain-following tracker designed to expand the addressable market for trackers on sites with sloped, uneven, and challenging terrain. It also provides TrueCapture, a self-adjusting tracker control system, which boosts solar power plant production by optimizing the position of individual tracker row in response to site features, such as varying topography and changing weather conditions; and NX Navigator, that assists solar power plant owners and operators in monitoring, controlling, and protecting their solar projects. The company was founded in 2013 and is headquartered in Fremont, California. As of March 31, 2024 Nextracker Inc. (Nextpower) was formerly a subsidiary of Flex Ltd.
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