Contrasting Bloom Energy (NYSE:BE) and Power Solutions International (NASDAQ:PSIX)

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

Earnings and Valuation

This table compares Power Solutions International and Bloom Energy”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	15.53
Bloom Energy	$3.11 billion	26.26	-$88.43 million	$0.75	370.13

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

Insider & Institutional Ownership

22.3% of Power Solutions International shares are held by institutional investors. Comparatively, 77.0% of Bloom Energy shares are held by institutional investors. 0.3% of Power Solutions International shares are held by insiders. Comparatively, 3.0% of Bloom Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Power Solutions International and Bloom Energy’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%
Bloom Energy	7.87%	35.45%	8.30%

Analyst Ratings

This is a breakdown of current recommendations for Power Solutions International and Bloom Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Power Solutions International	0	1	1	1	3.00
Bloom Energy	1	12	10	3	2.58

Power Solutions International presently has a consensus target price of $99.95, indicating a potential upside of 118.18%. Bloom Energy has a consensus target price of $254.14, indicating a potential downside of 8.45%. Given Power Solutions International’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Power Solutions International is more favorable than Bloom Energy.

Volatility and Risk

Power Solutions International has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500. Comparatively, Bloom Energy has a beta of 3.8, indicating that its share price is 280% more volatile than the S&P 500.

Summary

Bloom Energy beats Power Solutions International on 8 of the 15 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 Bloom Energy

Bloom Energy Corporation designs, manufactures, sells, and installs solid-oxide fuel cell systems for on-site power generation in the United States and internationally. The company offers Bloom Energy Server, a solid oxide technology that converts fuel, such as natural gas, biogas, hydrogen, or a blend of these fuels into electricity through an electrochemical process without combustion. It sells its products through direct and indirect sales channels to utilities, data centers, agriculture, retail, hospitals, higher education, biotech, and manufacturing industries. The company was formerly known as Ion America Corp. and changed its name to Bloom Energy Corporation in 2006. Bloom Energy Corporation was incorporated in 2001 and is headquartered in San Jose, California.