Reviewing Vertiv (NYSE:VRT) & Power Solutions International (NASDAQ:PSIX)

Power Solutions International (NASDAQ:PSIX – Get Free Report) and Vertiv (NYSE:VRT – Get Free Report) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Institutional and Insider Ownership

22.3% of Power Solutions International shares are owned by institutional investors. Comparatively, 89.9% of Vertiv shares are owned by institutional investors. 0.3% of Power Solutions International shares are owned by company insiders. Comparatively, 1.1% of Vertiv shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Power Solutions International and Vertiv, 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
Vertiv 1 5 23 1 2.80

Power Solutions International currently has a consensus price target of $99.95, indicating a potential upside of 118.57%. Vertiv has a consensus price target of $337.81, indicating a potential upside of 45.48%. Given Power Solutions International’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Power Solutions International is more favorable than Vertiv.

Valuation & Earnings

This table compares Power Solutions International and Vertiv”s top-line 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 1.46 $113.99 million $2.95 15.50
Vertiv $10.23 billion 8.74 $1.33 billion $5.35 43.40

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

Profitability

This table compares Power Solutions International and Vertiv’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%
Vertiv 15.99% 53.31% 16.47%

Volatility and Risk

Power Solutions International has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500. Comparatively, Vertiv has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500.

Summary

Vertiv beats Power Solutions International on 12 of the 14 factors compared between the two stocks.

About Power Solutions International

(Get Free Report)

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 Vertiv

(Get Free Report)

Vertiv Holdings Co, together with its subsidiaries, designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It offers AC and DC power management products, switchgear and busbar products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure that are integral to the technologies used for various services, including e-commerce, online banking, file sharing, video on-demand, energy storage, wireless communications, Internet of Things, and online gaming. The company also provides lifecycle management services, predictive analytics, and professional services for deploying, maintaining, and optimizing its products and their related systems; and preventative maintenance, acceptance testing, engineering and consulting, performance assessments, remote monitoring, training, spare parts, and digital critical infrastructure software services. It offers its products primarily under the Vertiv, Liebert, NetSure, Geist, E&I, Powerbar, and Avocent brands. The company serves cloud services, financial services, healthcare, transportation, manufacturing, energy, education, government, social media, and retail industries through a network of direct sales professionals, independent sales representatives, channel partners, and original equipment manufacturers. Vertiv Holdings Co is headquartered in Westerville, Ohio.

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