Power Solutions International (PSIX) versus The Competition Critical Review

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 risk, valuation, institutional ownership, profitability, earnings, analyst recommendations and dividends.

Volatility & Risk

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

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Power Solutions International	$722.41 million	$113.99 million	13.73
Power Solutions International Competitors	$2.32 billion	$137.32 million	21.22

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.

Institutional & Insider Ownership

22.3% of Power Solutions International shares are held by institutional investors. Comparatively, 37.1% of shares of all “Electrical Equipment” companies are held by institutional investors. 0.3% of Power Solutions International shares are held by insiders. Comparatively, 15.0% of shares of all “Electrical Equipment” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

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%	-87.35%	-8.79%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Power Solutions International and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Power Solutions International	0	1	1	1	3.00
Power Solutions International Competitors	2161	5000	6943	417	2.39

Power Solutions International presently has a consensus price target of $99.95, suggesting a potential upside of 146.85%. As a group, “Electrical Equipment” companies have a potential upside of 22.36%. Given Power Solutions International’s stronger consensus rating and higher probable upside, equities analysts clearly believe Power Solutions International is more favorable than its competitors.

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.