Critical Survey: Power Solutions International (OTCMKTS:PSIX) versus American Power Group (OTCMKTS:APGI)

Power Solutions International (OTCMKTS:PSIXGet Rating) and American Power Group (OTCMKTS:APGIGet Rating) are both small-cap auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Institutional & Insider Ownership

11.0% of Power Solutions International shares are owned by institutional investors. 10.4% of Power Solutions International shares are owned by company insiders. Comparatively, 75.8% of American Power Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Power Solutions International and American Power Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Power Solutions International 0 0 1 0 3.00
American Power Group 0 0 0 0 N/A

Power Solutions International presently has a consensus price target of $5.00, suggesting a potential upside of 150.00%. Given Power Solutions International’s higher possible upside, equities analysts plainly believe Power Solutions International is more favorable than American Power Group.

Profitability

This table compares Power Solutions International and American Power Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Power Solutions International -3.45% N/A -3.15%
American Power Group N/A N/A N/A

Volatility and Risk

Power Solutions International has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, American Power Group has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500.

Earnings and Valuation

This table compares Power Solutions International and American Power Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Power Solutions International $456.26 million 0.10 -$48.47 million ($0.69) -2.90
American Power Group N/A N/A N/A N/A N/A

American Power Group has lower revenue, but higher earnings than Power Solutions International.

Summary

Power Solutions International beats American Power Group on 5 of the 8 factors compared between the two stocks.

About Power Solutions International

(Get Rating)

Power Solutions International, Inc. designs, engineers, manufactures, markets, and sells engines and power systems in the United States, North America, the Pacific Rim, Europe, and internationally. The company offers alternative-fueled power systems for original equipment manufacturers of off-highway industrial equipment and on-road vehicles; and large custom-engineered integrated electrical power generation systems. It also provides basic engine blocks integrated with fuel system parts, as well as complete packaged power systems, including combined front accessory drives, cooling systems, electronic systems, air intake systems, fuel systems, housings, power takeoff systems, exhaust systems, hydraulic systems, enclosures, brackets, hoses, tubes, packaging, telematics, and other assembled components. In addition, the company offers compression and spark-ignited internal combustion engines that run on various fuels, such as natural gas, propane, gasoline, diesel, and biofuels in the energy, industrial, and transportation markets. Further, it provides standby and prime power generation, demand response, microgrid, renewable energy resiliency, arbor equipment, and combined heat and power; forklifts, wood chippers, stump grinders, sweepers/industrial scrubbers, aerial lift platforms/scissor lifts, irrigation pumps, oil and gas compression, oil lifts, off road utility vehicles, ground support equipment, ice resurfacing equipment, and pump jacks; and light and medium duty vocational trucks and vans, school and transit buses, and terminal and utility tractors. The company has a strategic collaboration agreement with Weichai Power Co., Ltd. Power Solutions International, Inc. was founded in 1985 and is headquartered in Wood Dale, Illinois.

About American Power Group

(Get Rating)

American Power Group Corporation provides patented dual fuel conversion system for primary and back-up diesel generators, and mid-to heavy-duty vehicular diesel engines in North America and internationally. It operates through two segments, Dual Fuel Conversion Operations and Natural Gas Liquids Operations. The company's dual fuel conversion system is a fuel delivery enhancement system that converts existing diesel engines into engines, which run on diesel fuel and compressed natural gas or liquefied natural gas; diesel fuel and pipeline gas, well-head gas, or approved bio-methane; and diesel. It also provides flare capture and recovery services to oil and gas production companies. The company was formerly known as GreenMan Technologies, Inc. and changed its name to American Power Group Corporation in August 2012. American Power Group Corporation was founded in 1992 and is headquartered in Algona, Iowa.

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