Coates International (OTCMKTS:COTE) vs. Power Solutions International (NASDAQ:PSIX) Critical Survey

Power Solutions International (NASDAQ:PSIX) and Coates International (OTCMKTS:COTE) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Insider and Institutional Ownership

22.3% of Power Solutions International shares are held by institutional investors. 0.6% of Power Solutions International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Power Solutions International and Coates International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Power Solutions International	0	0	1	0	3.00
Coates International	0	0	0	0	0.00

Given Coates International’s higher possible upside, analysts clearly believe Coates International is more favorable than Power Solutions International.

Profitability

This table compares Power Solutions International and Coates International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Power Solutions International	12.46%	293.35%	15.94%
Coates International	N/A	N/A	N/A

Valuation and Earnings

This table compares Power Solutions International and Coates International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Power Solutions International	$475.97 million	1.19	$26.31 million	$3.01	8.18
Coates International	N/A	N/A	N/A	N/A	N/A

Power Solutions International has higher revenue and earnings than Coates International.

Summary

Power Solutions International beats Coates International on 8 of the 9 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 Coates International

Coates International, Ltd. develops and sells Coates Spherical Rotary Valve (CSRV) system technology for use in various piston-driven internal combustion engines in the United States and internationally. The company's CSRV system technology replaces the intake and exhausts conventional poppet valves used in various piston-driven stationary, automotive, motorcycle, and marine engines. Its CSRV system technology is used in various applications, including engines for electric power generators for home use, industrial complexes, and grid installations; and engines to power motorcycles, automobiles, light and heavy trucks, machinery, railroads, marine engines, military equipment, light aircraft, helicopters, lawn mowers, snowmobiles and jet skis, etc. Coates International, Ltd. was founded in 1988 and is headquartered in Wall Township, New Jersey.