Power Solutions International (PSIX) & Its Peers Critical Analysis

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

Earnings and Valuation

This table compares Power Solutions International and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Power Solutions International	$722.41 million	$113.99 million	12.35
Power Solutions International Competitors	$2.32 billion	$137.32 million	21.58

Power Solutions International’s competitors have higher revenue and earnings than Power Solutions International. Power Solutions International is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Power Solutions International has a beta of 2.11, indicating that its stock price is 111% more volatile than the S&P 500. Comparatively, Power Solutions International’s competitors have a beta of -19.47, indicating that their average stock price is 2,047% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Power Solutions International and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Power Solutions International	0	1	1	1	3.00
Power Solutions International Competitors	2158	4995	6941	417	2.39

Power Solutions International currently has a consensus target price of $99.95, indicating a potential upside of 174.44%. As a group, “Electrical Equipment” companies have a potential upside of 25.13%. Given Power Solutions International’s stronger consensus rating and higher possible upside, analysts clearly believe Power Solutions International is more favorable than its competitors.

Profitability

This table compares Power Solutions International and its competitors’ 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%	-87.36%	-8.79%

Insider and Institutional Ownership

22.3% of Power Solutions International shares are owned by institutional investors. Comparatively, 37.3% of shares of all “Electrical Equipment” companies are owned by institutional investors. 0.3% of Power Solutions International shares are owned by company insiders. Comparatively, 15.3% of shares of all “Electrical Equipment” companies are owned 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.

Summary

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

Power Solutions International Company Profile

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.