Critical Analysis: Power Solutions International (PSIX) vs. Its Rivals

Power Solutions International (NASDAQ:PSIX) is one of 218 publicly-traded companies in the “Electrical Equipment” industry, but how does it compare to its peers? We will compare Power Solutions International to similar businesses based on the strength of its institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.

Institutional and Insider Ownership

22.3% of Power Solutions International shares are owned by institutional investors. Comparatively, 37.3% of shares of all “Electrical Equipment” companies are owned by institutional investors. 0.3% of Power Solutions International shares are owned by company insiders. Comparatively, 15.3% of shares of all “Electrical Equipment” companies are owned by company 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 Power Solutions International and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Power Solutions International	$722.41 million	$113.99 million	13.73
Power Solutions International Competitors	$2.37 billion	$144.53 million	21.36

Power Solutions International’s peers have higher revenue and earnings than Power Solutions International. Power Solutions International is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations and price targets for Power Solutions International and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Power Solutions International	0	1	1	1	3.00
Power Solutions International Competitors	2160	4998	6941	417	2.39

Power Solutions International presently has a consensus target price of $99.95, suggesting a potential upside of 146.85%. As a group, “Electrical Equipment” companies have a potential upside of 23.74%. Given Power Solutions International’s stronger consensus rating and higher possible upside, research analysts plainly believe Power Solutions International is more favorable than its peers.

Profitability

This table compares Power Solutions International and its peers’ 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%
Power Solutions International Competitors	-218.47%	-87.34%	-8.78%

Risk and Volatility

Power Solutions International has a beta of 2.11, suggesting that its stock price is 111% more volatile than the S&P 500. Comparatively, Power Solutions International’s peers have a beta of -19.47, suggesting that their average stock price is 2,047% less volatile than the S&P 500.

Summary

Power Solutions International beats its peers on 7 of the 13 factors compared.

Power Solutions International Company Profile

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.