Head-To-Head Contrast: Solid Power (NASDAQ:SLDP) versus Power Solutions International (NASDAQ:PSIX)

Power Solutions International (NASDAQ:PSIX) and Solid Power (NASDAQ:SLDP) are both small-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Insider and Institutional Ownership

22.3% of Power Solutions International shares are held by institutional investors. Comparatively, 33.7% of Solid Power shares are held by institutional investors. 0.3% of Power Solutions International shares are held by company insiders. Comparatively, 5.7% of Solid Power shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Power Solutions International has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500. Comparatively, Solid Power has a beta of 1.94, indicating that its share price is 94% more volatile than the S&P 500.

Valuation and Earnings

This table compares Power Solutions International and Solid Power”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Power Solutions International	$676.19 million	1.44	$113.99 million	$2.95	14.27
Solid Power	$21.75 million	26.54	-$93.41 million	($0.45)	-5.62

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Power Solutions International	10.03%	37.73%	15.58%
Solid Power	-485.47%	-19.69%	-18.39%

Analyst Recommendations

This is a summary of recent ratings and price targets for Power Solutions International and Solid Power, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Power Solutions International	0	1	1	1	3.00
Solid Power	1	1	3	0	2.40

Power Solutions International currently has a consensus price target of $99.95, indicating a potential upside of 137.35%. Solid Power has a consensus price target of $6.92, indicating a potential upside of 173.39%. Given Solid Power’s higher possible upside, analysts plainly believe Solid Power is more favorable than Power Solutions International.

Summary

Power Solutions International beats Solid Power on 10 of the 15 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 Solid Power

Solid Power, Inc. develops solid state battery technologies for the electric vehicles (EV) and other markets in the United States. The company sells its sulfide-based solid electrolyte; and licenses its solid-state cell designs and manufacturing processes. It also produces and sells 0.2, 2, 20 ampere-hour (Ah), and EV cells. Solid Power, Inc. was founded in 2011 and is headquartered in Louisville, Colorado.