Power Solutions International (NASDAQ:PSIX – Get Free Report) and TPI Composites (NASDAQ:TPIC – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.
Institutional and Insider Ownership
22.3% of Power Solutions International shares are held by institutional investors. Comparatively, 75.2% of TPI Composites shares are held by institutional investors. 0.6% of Power Solutions International shares are held by insiders. Comparatively, 3.7% of TPI Composites shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Power Solutions International and TPI Composites”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Power Solutions International | $436.42 million | 1.51 | $26.31 million | $2.36 | 12.18 |
| TPI Composites | $1.33 billion | 0.03 | -$201.78 million | ($5.07) | -0.19 |
Risk & Volatility
Power Solutions International has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, TPI Composites has a beta of 2.07, suggesting that its share price is 107% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings for Power Solutions International and TPI Composites, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Power Solutions International | 0 | 0 | 0 | 0 | 0.00 |
| TPI Composites | 1 | 5 | 1 | 1 | 2.25 |
TPI Composites has a consensus target price of $3.83, indicating a potential upside of 294.58%. Given TPI Composites’ stronger consensus rating and higher possible upside, analysts plainly believe TPI Composites is more favorable than Power Solutions International.
Profitability
This table compares Power Solutions International and TPI Composites’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Power Solutions International | 12.46% | 293.35% | 15.94% |
| TPI Composites | -18.01% | N/A | -25.70% |
Summary
TPI Composites beats Power Solutions International on 8 of the 15 factors compared between the two stocks.
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.
About TPI Composites
TPI Composites, Inc. manufactures and sells composite wind blades, and related precision molding and assembly systems to original equipment manufacturers (OEMs) in the United States, Mexico, Europe, the Middle East, Africa, and India. It also provides composite solutions for the automotive industry; and field service inspection and repair services comprising diagnostic, repair, and maintenance services for wind blades to OEM customers, and wind farm owners and operators. The company was formerly known as LCSI Holding, Inc. and changed its name to TPI Composites, Inc. in 2008. TPI Composites, Inc. was founded in 1968 and is headquartered in Scottsdale, Arizona.
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