PowerSecure International (NYSE: POWR) and Hydrogenics Corporation (NASDAQ:HYGS) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Insider and Institutional Ownership

19.2% of Hydrogenics Corporation shares are owned by institutional investors. 26.1% of Hydrogenics Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares PowerSecure International and Hydrogenics Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
PowerSecure International N/A N/A N/A N/A N/A
Hydrogenics Corporation $31.79 million 4.02 -$9.14 million ($0.98) -8.57

PowerSecure International has higher revenue, but lower earnings than Hydrogenics Corporation.

Profitability

This table compares PowerSecure International and Hydrogenics Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PowerSecure International -9.44% -24.74% -12.37%
Hydrogenics Corporation -39.04% -88.76% -21.38%

Analyst Recommendations

This is a summary of current ratings and recommmendations for PowerSecure International and Hydrogenics Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PowerSecure International 0 0 0 0 N/A
Hydrogenics Corporation 0 1 3 0 2.75

Hydrogenics Corporation has a consensus target price of $10.00, suggesting a potential upside of 19.05%. Given Hydrogenics Corporation’s higher possible upside, analysts clearly believe Hydrogenics Corporation is more favorable than PowerSecure International.

Summary

Hydrogenics Corporation beats PowerSecure International on 5 of the 8 factors compared between the two stocks.

PowerSecure International Company Profile

PowerSecure International, Inc. is a provider of products and services to electric utilities and to their commercial, institutional and industrial customers. The Company operates through four segments: Distributed Generation, Solar Energy, Utility Infrastructure and Energy Efficiency. Its Distributed Generation segment manufactures, installs and operates electric generation equipment on site at a facility where the power is used, including commercial, institutional and industrial operations. The Solar Energy segment is operated by its PowerSecure Solar subsidiary. Its Solar Energy systems use photovoltaic (PV) solar panels to provide utilities and their customers with environmentally friendly power to augment their power requirements. The Utility Infrastructure solutions are focused on helping electric utilities design, upgrade and maintain infrastructure that enhances the efficiency of their grid systems. It has over two primary Energy Efficiency product and service offerings.

Hydrogenics Corporation Company Profile

Hydrogenics Corp is a Canada-based firm, which designs and manufactures hydrogen generation products based on water electrolysis technology, and fuel cell products based on proton exchange membrane (PEM) technology. The Company’s segments are Onsite Generation and Power Systems. The OnSite Generation segment is based in Oevel, Belgium and develops products for industrial gas, hydrogen fueling and renewable energy storage markets. The Power business segment is based in Mississauga, Canada, with a satellite facility in Gladbeck, Germany. The Company’s products include HySTAT hydrogen generation equipment and HyPM fuel cell products. It has facilities in Mississauga, Ontario, Canada; Oevel-Westerlo, Belgium, and Gladbeck, Germany. It also has sales and service offices in Eastern Europe and North America. The Company has operations in Belgium, Canada and Germany with satellite offices in the United States and branch offices in Russia and Indonesia. Its products are sold around the world.

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