Schneider Electric (OTCMKTS:SBGSY) versus Powell Industries (NASDAQ:POWL) Head to Head Analysis

Schneider Electric (OTCMKTS:SBGSY) and Powell Industries (NASDAQ:POWL) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Profitability

This table compares Schneider Electric and Powell Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Schneider Electric	N/A	N/A	N/A
Powell Industries	16.22%	33.16%	18.23%

Dividends

Schneider Electric pays an annual dividend of $0.36 per share and has a dividend yield of 0.6%. Powell Industries pays an annual dividend of $1.07 per share and has a dividend yield of 0.3%. Powell Industries pays out 7.4% of its earnings in the form of a dividend. Powell Industries has increased its dividend for 3 consecutive years.

Earnings and Valuation

This table compares Schneider Electric and Powell Industries”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schneider Electric	$41.29 billion	4.11	$4.62 billion	N/A	N/A
Powell Industries	$1.01 billion	4.35	$149.85 million	$14.40	25.35

Schneider Electric has higher revenue and earnings than Powell Industries.

Risk & Volatility

Schneider Electric has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Powell Industries has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Insider & Institutional Ownership

0.8% of Schneider Electric shares are held by institutional investors. Comparatively, 89.8% of Powell Industries shares are held by institutional investors. 2.2% of Powell Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Schneider Electric and Powell Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schneider Electric	1	2	3	3	2.89
Powell Industries	0	0	2	1	3.33

Powell Industries has a consensus price target of $312.00, indicating a potential downside of 14.52%. Given Powell Industries’ stronger consensus rating and higher probable upside, analysts clearly believe Powell Industries is more favorable than Schneider Electric.

Summary

Powell Industries beats Schneider Electric on 9 of the 16 factors compared between the two stocks.

About Schneider Electric

Schneider Electric S.E. engages in the energy management and industrial automation businesses in the France, Western Europe, North America, the Asia Pacific, Eastern Europe, the Middle East, Africa, South America, and internationally. The company offers busway and cable management products, circuit breakers and switches, contactors and protection relays, electrical car charging, electrical protection and control products, energy management software solutions, load banks, power monitoring and control systems, power quality and power factor correction products, push buttons, switches, pilot lights and joysticks, surge protection and power conditioning services, switchboards and enclosures, and transfer switches. It also provides access control, controllers, expansion modules, servers and HMIs, fire and security products, sensors, valves and valve actuators, and variable speed and frequency drives; energy management and software solutions; feeder automation, grid automation, and SCADA software products; and medium voltage switchgears and transformers, outdoor equipment, substation automation products, and switchgear components. In addition, the company offers critical power and cooling services, data center cooling and software, IT power distribution products, prefabricated data center modules, racks and accessories, security and environmental monitoring, surge protection and power conditioning, and uninterruptible power supply products; and home automation and security, installation materials and systems, light switches, and electrical sockets. Further, the company provides human machine interface, industrial automation software and communication, interface relays, measurement and control relays, measurement and instrumentation products, motion controls and robotics, signaling units, solar and energy storage, power supplies, power protection and transformers, process control and safety, RFID systems, and other industrial automation and control products, as well as PLC, PAC, and dedicated controllers. Schneider Electric S.E.was founded in 1836 and is headquartered in Rueil-Malmaison, France.

About Powell Industries

Powell Industries, Inc., together with its subsidiaries, designs, develops, manufactures, sells, and services custom-engineered equipment and systems. The company’s principal products include integrated power control room substations, custom-engineered modules, electrical houses, medium-voltage circuit breakers, monitoring and control communications systems, motor control centers, switches, and bus duct systems, as well as traditional and arc-resistant distribution switchgears and control gears. Its products have application in voltages ranging from 480 volts to 38,000 volts. The company also provide field service inspection, installation, commissioning, modification and repair, spare parts, retrofit and retrofill components for existing systems, and replacement circuit breakers for switchgear. It serves onshore and offshore production, liquefied natural gas facilities and terminals, pipelines, refineries, and petrochemical plants, as well as electric utility, light rail traction power, mining and metals, pulp and paper, data centers and other municipal, commercial, and industrial markets. The company has operations in the United States, Canada, the Middle East, Africa, Europe, Mexico, and Central and South America. Powell Industries, Inc. was founded in 1947 and is headquartered in Houston, Texas.