Critical Survey: Powell Industries (NASDAQ:POWL) vs. CSLM Acquisition (NASDAQ:SPWR)

Powell Industries (NASDAQ:POWLGet Free Report) and CSLM Acquisition (NASDAQ:SPWRGet Free Report) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.

Insider & Institutional Ownership

89.8% of Powell Industries shares are held by institutional investors. Comparatively, 47.4% of CSLM Acquisition shares are held by institutional investors. 2.2% of Powell Industries shares are held by insiders. Comparatively, 42.6% of CSLM Acquisition 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.

Analyst Ratings

This is a breakdown of current ratings and price targets for Powell Industries and CSLM Acquisition, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Powell Industries 0 2 3 2 3.00
CSLM Acquisition 1 0 1 0 2.00

Powell Industries presently has a consensus target price of $215.42, indicating a potential upside of 0.91%. CSLM Acquisition has a consensus target price of $5.40, indicating a potential upside of 2,348.98%. Given CSLM Acquisition’s higher probable upside, analysts plainly believe CSLM Acquisition is more favorable than Powell Industries.

Earnings & Valuation

This table compares Powell Industries and CSLM Acquisition”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Powell Industries $1.10 billion 7.04 $180.75 million $5.21 40.98
CSLM Acquisition $300.00 million 0.16 -$45.35 million ($0.47) -0.47

Powell Industries has higher revenue and earnings than CSLM Acquisition. CSLM Acquisition is trading at a lower price-to-earnings ratio than Powell Industries, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Powell Industries and CSLM Acquisition’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Powell Industries 16.49% 27.51% 15.94%
CSLM Acquisition -14.34% N/A -19.80%

Risk & Volatility

Powell Industries has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, CSLM Acquisition has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Summary

Powell Industries beats CSLM Acquisition on 13 of the 15 factors compared between the two stocks.

About Powell Industries

(Get Free Report)

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.

About CSLM Acquisition

(Get Free Report)

Complete Solaria, Inc. engages in the provision of solar services. It offers sales enablement, project management, partner coordination, and customer communication. The company is headquartered in San Ramon, CA and does business as SunPower Corporation.

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