Analyzing Power Solutions International (PSIX) and Its Peers

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

Analyst Ratings

This is a summary of current recommendations and price targets for Power Solutions International and its rivals, 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	2185	5026	6972	420	2.39

Power Solutions International currently has a consensus price target of $99.95, indicating a potential upside of 125.70%. As a group, “Electrical Equipment” companies have a potential upside of 24.79%. Given Power Solutions International’s stronger consensus rating and higher probable upside, equities analysts clearly believe Power Solutions International is more favorable than its rivals.

Risk & Volatility

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

Earnings and Valuation

This table compares Power Solutions International and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Power Solutions International	$722.41 million	$113.99 million	15.01
Power Solutions International Competitors	$2.41 billion	$138.62 million	22.71

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

Profitability

This table compares Power Solutions International and its rivals’ 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	-217.86%	-115.34%	-8.78%

Institutional and Insider Ownership

22.3% of Power Solutions International shares are held by institutional investors. Comparatively, 37.2% of shares of all “Electrical Equipment” companies are held by institutional investors. 0.3% of Power Solutions International shares are held by company insiders. Comparatively, 15.3% of shares of all “Electrical Equipment” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

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

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.