BWX Technologies (NYSE:BWXT) vs. Power Solutions International (NASDAQ:PSIX) Critical Comparison

BWX Technologies (NYSE:BWXT) and Power Solutions International (NASDAQ:PSIX) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Insider & Institutional Ownership

94.4% of BWX Technologies shares are held by institutional investors. Comparatively, 22.3% of Power Solutions International shares are held by institutional investors. 0.5% of BWX Technologies shares are held by insiders. Comparatively, 0.6% of Power Solutions International shares are held by 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 recent ratings and price targets for BWX Technologies and Power Solutions International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BWX Technologies	1	1	7	0	2.67
Power Solutions International	0	0	0	0	0.00

BWX Technologies presently has a consensus price target of $127.50, indicating a potential upside of 24.86%. Given BWX Technologies’ stronger consensus rating and higher probable upside, research analysts clearly believe BWX Technologies is more favorable than Power Solutions International.

Valuation & Earnings

This table compares BWX Technologies and Power Solutions International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BWX Technologies	$2.68 billion	3.48	$245.85 million	$3.02	33.81
Power Solutions International	$436.42 million	1.75	$26.31 million	$2.36	14.08

BWX Technologies has higher revenue and earnings than Power Solutions International. Power Solutions International is trading at a lower price-to-earnings ratio than BWX Technologies, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

BWX Technologies has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Power Solutions International has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BWX Technologies	10.32%	31.95%	11.11%
Power Solutions International	12.46%	293.35%	15.94%

Summary

BWX Technologies beats Power Solutions International on 9 of the 14 factors compared between the two stocks.

About BWX Technologies

BWX Technologies, Inc., together with its subsidiaries, manufactures and sells nuclear components in the United States, Canada, and internationally. It operates through two segments, Government Operations and Commercial Operations. The Government Operations segment designs and manufactures naval nuclear components, reactors, and nuclear fuel; fabrication activities; and supplies proprietary and sole-source valves, manifolds, and fittings to naval and commercial shipping customers. This segment also involved in manufacture of close-tolerance and equipment for nuclear applications; down blend government stockpiles of uranium; receives, stores, characterizes, dissolves, recovers, and purifies uranium-bearing materials; and supplies research reactor fuel elements for colleges, universities, and national laboratories, as well as components for defense applications. The Commercial Operations segment designs and manufactures commercial nuclear steam generators, heat exchangers, pressure vessels, and reactor components; and other auxiliary equipment, including containers for the storage of nuclear fuel and other high-level nuclear waste. This segment also offers nuclear fuel, fuel handling systems, tooling delivery systems, nuclear grade materials, and precisely machined components, and related services for CANDU nuclear power plants; provides in-plant inspection, maintenance, and modification services, as well as non-destructive examination and tooling/repair solutions; and manufactures medical radioisotopes, radiopharmaceuticals, and medical devices. The company was formerly known as The Babcock & Wilcox Company and changed its name to BWX Technologies, Inc. in June 2015. BWX Technologies, Inc. was founded in 1867 and is headquartered in Lynchburg, Virginia.

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.