Power Solutions International (OTC: PSIX) and Jason Industries (NASDAQ:JASN) are both small-cap auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitabiliy, institutional ownership and risk.

Volatility and Risk

Power Solutions International has a beta of 2.73, suggesting that its share price is 173% more volatile than the S&P 500. Comparatively, Jason Industries has a beta of 0.1, suggesting that its share price is 90% less volatile than the S&P 500.

Valuation and Earnings

This table compares Power Solutions International and Jason Industries’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Power Solutions International $365.12 million 0.27 $8.42 million N/A N/A
Jason Industries $689.74 million 0.05 $64.12 million ($3.04) -0.40

Jason Industries has higher revenue and earnings than Power Solutions International.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Power Solutions International and Jason Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Power Solutions International 0 3 1 0 2.25
Jason Industries 0 0 1 0 3.00

Power Solutions International presently has a consensus price target of $13.50, suggesting a potential upside of 49.17%. Jason Industries has a consensus price target of $3.25, suggesting a potential upside of 166.39%. Given Jason Industries’ stronger consensus rating and higher possible upside, analysts plainly believe Jason Industries is more favorable than Power Solutions International.

Profitability

This table compares Power Solutions International and Jason Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Power Solutions International N/A N/A N/A
Jason Industries -9.80% -46.40% -0.63%

Institutional & Insider Ownership

24.6% of Power Solutions International shares are owned by institutional investors. Comparatively, 38.6% of Jason Industries shares are owned by institutional investors. 56.5% of Power Solutions International shares are owned by insiders. Comparatively, 20.0% of Jason Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Power Solutions International beats Jason Industries on 6 of the 11 factors compared between the two stocks.

Power Solutions International Company Profile

Power Solutions International, Inc. is a producer and distributor of a range of low-emission power systems that run on non-diesel fuels, such as natural gas, propane and gasoline. The Company’s industrial power systems are used by original equipment manufacturers (OEMs) in a range of industries with a diversified set of applications, including stationary electricity generators, oil and gas equipment, forklifts, aerial work platforms, industrial sweepers, arbor equipment, agricultural and turf equipment, aircraft ground support equipment, construction and irrigation equipment, and other industrial equipment. The Company provides alternative fuel power systems for OEMs of off-highway industrial equipment and on-road medium trucks and busses. In addition to its emission-certified power systems, the Company produces and distributes non-emission-certified power systems for industrial OEMs for particular applications in markets without emission standards.

Jason Industries Company Profile

Jason Industries is the parent company to a global family of manufacturing leaders within the seating, finishing, components and automotive acoustics markets, including Assembled Products (Buffalo Grove, Ill.), Janesville Acoustics (Southfield, Mich.), Metalex (Libertyville, Ill.), Milsco (Milwaukee, Wis.), Osborn (Richmond, Indiana and Burgwald, Germany) and Sealeze (Richmond, Va.). All Jason companies utilize the Jason Business System, a collaborative manufacturing strategy applicable to a diverse group of companies that includes business principles and processes to ensure best-in-class results and collective strength. Headquartered in Milwaukee, Wis., Jason employs more than 4,000 individuals in 15 countries.

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