Power Solutions International (PSIX) & Its Competitors Critical Comparison

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

Risk and 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, Power Solutions International’s peers have a beta of -19.47, meaning that their average stock price is 2,047% less volatile than the S&P 500.

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%	-87.35%	-8.79%

Institutional & Insider Ownership

22.3% of Power Solutions International shares are held by institutional investors. Comparatively, 37.1% of shares of all “Electrical Equipment” companies are held by institutional investors. 0.3% of Power Solutions International shares are held by company insiders. Comparatively, 15.0% of shares of all “Electrical Equipment” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Power Solutions International and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Power Solutions International	$722.41 million	$113.99 million	13.73
Power Solutions International Competitors	$2.32 billion	$137.32 million	21.23

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 Ratings

This is a breakdown of current ratings 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	2162	5000	6943	417	2.39

Power Solutions International presently has a consensus price target of $99.95, suggesting a potential upside of 146.85%. As a group, “Electrical Equipment” companies have a potential upside of 22.56%. 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.

Summary

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

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.