Power Solutions International (NASDAQ:PSIX) vs. nVent Electric (NYSE:NVT) Head to Head Contrast

nVent Electric (NYSE:NVT) and Power Solutions International (NASDAQ:PSIX) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for nVent Electric and Power Solutions International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
nVent Electric	0	0	14	3	3.18
Power Solutions International	0	1	1	1	3.00

nVent Electric presently has a consensus target price of $199.86, suggesting a potential upside of 22.90%. Power Solutions International has a consensus target price of $99.95, suggesting a potential upside of 137.35%. Given Power Solutions International’s higher probable upside, analysts clearly believe Power Solutions International is more favorable than nVent Electric.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
nVent Electric	12.38%	18.85%	10.30%
Power Solutions International	10.03%	37.73%	15.58%

Insider & Institutional Ownership

90.0% of nVent Electric shares are held by institutional investors. Comparatively, 22.3% of Power Solutions International shares are held by institutional investors. 1.7% of nVent Electric shares are held by insiders. Comparatively, 0.3% of Power Solutions International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

nVent Electric has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, Power Solutions International has a beta of 2.11, meaning that its stock price is 111% more volatile than the S&P 500.

Valuation & Earnings

This table compares nVent Electric and Power Solutions International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
nVent Electric	$3.89 billion	6.76	$710.20 million	$3.66	44.43
Power Solutions International	$676.19 million	1.44	$113.99 million	$2.95	14.27

nVent Electric has higher revenue and earnings than Power Solutions International. Power Solutions International is trading at a lower price-to-earnings ratio than nVent Electric, indicating that it is currently the more affordable of the two stocks.

Summary

nVent Electric beats Power Solutions International on 11 of the 15 factors compared between the two stocks.

About nVent Electric

nVent Electric plc, together with its subsidiaries, designs, manufactures, markets, installs, and services electrical connection and protection solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company operates through three segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management. The Enclosures segment provides solutions to protect electronics and data in mission critical applications, including data solutions. This segment also offers digital and automation solutions, system integrations, and global services. The Electrical & Fastening Solutions segment provides solutions that connect and protect power and data infrastructure. This segment also offers power connections, fastening solutions, cable management solutions, grounding and bonding systems, and tools and test instruments. The Thermal Management segment offers heat management solutions that protect people and assets. This segment includes heat tracing for freeze protection and process temperature maintenance and control; pipe freeze protection, surface deicing, hot water temperature maintenance, floor heating, fire-rated wiring, and leak detection; and heat trace systems, connected controls, remote monitoring, and annual service programs. The company markets its products through electrical distributors, contractors, and original equipment manufacturers under the CADDY, ERICO, GARDNER BENDER, HOFFMAN, ILSCO, RAYCHEM, SCHROFF, and TRACER brand names. Its products are used for various applications, such as industrial, commercial and residential, infrastructure, and energy. nVent Electric plc was founded in 1903 and is based in London, the United Kingdom.

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.