Power Solutions International (NASDAQ:PSIX – Get Free Report) and Hubbell (NYSE:HUBB – Get Free Report) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.
Insider and Institutional Ownership
22.3% of Power Solutions International shares are owned by institutional investors. Comparatively, 88.2% of Hubbell shares are owned by institutional investors. 0.3% of Power Solutions International shares are owned by insiders. Comparatively, 0.6% of Hubbell shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current recommendations and price targets for Power Solutions International and Hubbell, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Power Solutions International | 0 | 1 | 1 | 1 | 3.00 |
| Hubbell | 0 | 5 | 5 | 1 | 2.64 |
Power Solutions International presently has a consensus target price of $99.95, suggesting a potential upside of 106.38%. Hubbell has a consensus target price of $552.67, suggesting a potential upside of 20.21%. Given Power Solutions International’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Power Solutions International is more favorable than Hubbell.
Risk & Volatility
Power Solutions International has a beta of 2.01, suggesting that its share price is 101% more volatile than the S&P 500. Comparatively, Hubbell has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.
Profitability
This table compares Power Solutions International and Hubbell’s 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% |
| Hubbell | 14.49% | 27.11% | 11.48% |
Earnings & Valuation
This table compares Power Solutions International and Hubbell”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Power Solutions International | $722.41 million | 1.55 | $113.99 million | $2.95 | 16.42 |
| Hubbell | $5.84 billion | 4.16 | $887.10 million | $16.89 | 27.22 |
Hubbell has higher revenue and earnings than Power Solutions International. Power Solutions International is trading at a lower price-to-earnings ratio than Hubbell, indicating that it is currently the more affordable of the two stocks.
Summary
Hubbell beats Power Solutions International on 9 of the 14 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 Hubbell
Hubbell Incorporated, together with its subsidiaries, designs, manufactures, and sells electrical and utility solutions in the United States and internationally. It operates through two segments, Electrical Solutions and Utility Solutions. The Electrical Solution segment offers standard and special application wiring device products, rough-in electrical products, connector and grounding products, lighting fixtures, and other electrical equipment for use in industrial, commercial, and institutional facilities by electrical contractors, maintenance personnel, electricians, utilities, and telecommunications companies, as well as components and assemblies. It also designs and manufactures various industrial controls, and communication systems for use in the non-residential and industrial markets, as well as in the oil and gas, and mining industries. This segment sells its products through electrical and industrial distributors, home centers, retail and hardware outlets, lighting showrooms, and residential product-oriented internet sites; and special application products primarily through wholesale distributors to contractors, industrial customers, and original equipment manufacturers. The Utility Solution segment designs, manufactures, and sells electrical distribution, transmission, substation, and telecommunications products, such as arresters, insulators, connectors, anchors, bushings, and enclosures cutoffs and switches; and utility infrastructure products, including smart meters, communications systems, and protection and control devices. This segment sells its products to distributors. Its brand portfolio includes Hubbell, Kellems, Bryant, Burndy, CMC, Bell, TayMac, Wiegmann, Killark, Hawke, Aclara, Fargo, Quazite, Hot Box, etc. The company was founded in 1888 and is headquartered in Shelton, Connecticut.
Receive News & Ratings for Power Solutions International Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Power Solutions International and related companies with MarketBeat.com's FREE daily email newsletter.
