Powell Industries (NASDAQ:POWL – Get Free Report) and CSLM Acquisition (NASDAQ:SPWR – Get Free Report) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.
Risk & Volatility
Powell Industries has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, CSLM Acquisition has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for Powell Industries and CSLM Acquisition, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Powell Industries | 0 | 2 | 3 | 2 | 3.00 |
| CSLM Acquisition | 1 | 0 | 1 | 0 | 2.00 |
Valuation and Earnings
This table compares Powell Industries and CSLM Acquisition”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Powell Industries | $1.10 billion | 6.87 | $180.75 million | $5.21 | 40.00 |
| CSLM Acquisition | $300.00 million | 0.17 | -$45.35 million | ($0.47) | -0.51 |
Powell Industries has higher revenue and earnings than CSLM Acquisition. CSLM Acquisition is trading at a lower price-to-earnings ratio than Powell Industries, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Powell Industries and CSLM Acquisition’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Powell Industries | 16.49% | 27.51% | 15.94% |
| CSLM Acquisition | -14.34% | N/A | -19.80% |
Insider & Institutional Ownership
89.8% of Powell Industries shares are owned by institutional investors. Comparatively, 47.4% of CSLM Acquisition shares are owned by institutional investors. 2.2% of Powell Industries shares are owned by insiders. Comparatively, 42.6% of CSLM Acquisition shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Powell Industries beats CSLM Acquisition on 13 of the 15 factors compared between the two stocks.
About Powell Industries
Powell Industries, Inc., together with its subsidiaries, designs, develops, manufactures, sells, and services custom-engineered equipment and systems. The company’s principal products include integrated power control room substations, custom-engineered modules, electrical houses, medium-voltage circuit breakers, monitoring and control communications systems, motor control centers, switches, and bus duct systems, as well as traditional and arc-resistant distribution switchgears and control gears. Its products have application in voltages ranging from 480 volts to 38,000 volts. The company also provide field service inspection, installation, commissioning, modification and repair, spare parts, retrofit and retrofill components for existing systems, and replacement circuit breakers for switchgear. It serves onshore and offshore production, liquefied natural gas facilities and terminals, pipelines, refineries, and petrochemical plants, as well as electric utility, light rail traction power, mining and metals, pulp and paper, data centers and other municipal, commercial, and industrial markets. The company has operations in the United States, Canada, the Middle East, Africa, Europe, Mexico, and Central and South America. Powell Industries, Inc. was founded in 1947 and is headquartered in Houston, Texas.
About CSLM Acquisition
Complete Solaria, Inc. engages in the provision of solar services. It offers sales enablement, project management, partner coordination, and customer communication. The company is headquartered in San Ramon, CA and does business as SunPower Corporation.
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