Head to Head Review: American Power Group (OTCMKTS:APGI) and Power Solutions International (NASDAQ:PSIX)

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

Risk & Volatility

Power Solutions International has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, American Power Group has a beta of -1.03, meaning that its share price is 203% less volatile than the S&P 500.

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	12.46%	293.35%	15.94%
American Power Group	N/A	N/A	N/A

Institutional and Insider Ownership

22.3% of Power Solutions International shares are owned by institutional investors. 0.6% 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, hedge funds and endowments believe a stock is poised for long-term growth.

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	$475.97 million	0.98	$26.31 million	$3.01	6.74
American Power Group	$3.36 million	6.55	-$1.00 million	N/A	N/A

Power Solutions International has higher revenue and earnings than American Power Group.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Power Solutions International and American Power Group, as reported 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	0.00

Summary

Power Solutions International beats American Power Group on 9 of the 11 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 American Power Group

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.