Head-To-Head Review: Kone Oyj (OTCMKTS:KNYJY) & Ideal Power (NASDAQ:IPWR)

Ideal Power (NASDAQ:IPWR) and Kone Oyj (OTCMKTS:KNYJY) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Volatility & Risk

Ideal Power has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, Kone Oyj has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.

Profitability

This table compares Ideal Power and Kone Oyj’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ideal Power	-26,225.58%	-80.27%	-69.83%
Kone Oyj	8.48%	38.70%	10.75%

Institutional and Insider Ownership

16.4% of Ideal Power shares are owned by institutional investors. 5.4% of Ideal Power shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Ideal Power and Kone Oyj, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ideal Power	1	0	1	0	2.00
Kone Oyj	1	1	0	0	1.50

Ideal Power currently has a consensus target price of $10.75, suggesting a potential upside of 222.82%. Given Ideal Power’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Ideal Power is more favorable than Kone Oyj.

Earnings and Valuation

This table compares Ideal Power and Kone Oyj”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ideal Power	$43,136.00	657.03	-$10.42 million	($1.24)	-2.69
Kone Oyj	$12.01 billion	2.63	$1.03 billion	$1.02	34.21

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

About Ideal Power

Ideal Power Inc. focuses on the development and commercialization of its bidirectional bipolar junction TRANsistor solid-state switch technology. It also offers SymCool Power Module designed to meet low conduction loss needs of the solid-state circuit breaker market. The company serves electric and hybrid electric vehicles, electric vehicle charging, renewable energy and energy storage system power converters, uninterruptible power supplies for data centers, industrial motor drives, solid-state circuit breakers, distribution and transmission switches and controls, and other industrial and military markets. The company was formerly known as Ideal Power Converters Inc. and changed its name to Ideal Power Inc. in July 2013. Ideal Power Inc. was incorporated in 2007 and is headquartered in Austin, Texas.

About Kone Oyj

KONE Oyj, together with its subsidiaries, engages in the elevator and escalator business worldwide. The company provides elevators, escalators, and automatic building doors. It offers maintenance services; and modernization solutions. In addition, the company offers KONE Office Flow, a connected solution that allows for personalized user experiences and touch-free access; health and well-being solutions for elevators, escalators, and doors; KONE Access, an access control system, which is integrated with elevator system and building doors; KONE Destination, a destination control system that reduce waiting and travel times; KONE infotainment, a communication channel for building tenants and visitors; and monitoring solutions that enable real-time inspection of elevators and escalators. Further, it provides people flow planning and consulting services; solutions for special buildings and large projects; cybersecurity solutions; and energy solutions for greener buildings. KONE Oyj was founded in 1908 and is based in Espoo, Finland.