Vestas Wind Systems AS (OTCMKTS:VWDRY – Get Free Report) and Power Solutions International (NASDAQ:PSIX – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.
Profitability
This table compares Vestas Wind Systems AS and Power Solutions International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vestas Wind Systems AS | 4.44% | 24.02% | 3.33% |
| Power Solutions International | 10.03% | 39.20% | 15.71% |
Analyst Ratings
This is a summary of recent ratings for Vestas Wind Systems AS and Power Solutions International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vestas Wind Systems AS | 1 | 3 | 0 | 3 | 2.71 |
| Power Solutions International | 0 | 2 | 1 | 0 | 2.33 |
Insider & Institutional Ownership
22.3% of Power Solutions International shares are held by institutional investors. 0.3% of Power Solutions International shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Vestas Wind Systems AS has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Power Solutions International has a beta of 2.01, meaning that its share price is 101% more volatile than the S&P 500.
Earnings and Valuation
This table compares Vestas Wind Systems AS and Power Solutions International”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vestas Wind Systems AS | $21.29 billion | 1.27 | $880.23 million | $0.33 | 27.45 |
| Power Solutions International | $722.41 million | 1.35 | $113.99 million | $2.95 | 14.29 |
Vestas Wind Systems AS has higher revenue and earnings than Power Solutions International. Power Solutions International is trading at a lower price-to-earnings ratio than Vestas Wind Systems AS, indicating that it is currently the more affordable of the two stocks.
Summary
Power Solutions International beats Vestas Wind Systems AS on 10 of the 15 factors compared between the two stocks.
About Vestas Wind Systems AS
Vestas Wind Systems A/S engages in the design, manufacture, installation, and services of wind turbines the United States, Denmark, and internationally. It operates in two segments, Power Solutions and Service. The Power Solutions segment offers onshore and offshore wind power plants, wind turbines, development sites, etc. The Service segment engages in the sale of service contracts, spare parts, and related activities. Vestas Wind Systems A/S was founded in 1898 and is headquartered in Aarhus, Denmark.
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.
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