Contrasting Vestas Wind Systems AS (OTCMKTS:VWDRY) and Power Solutions International (NASDAQ:PSIX)

Power Solutions International (NASDAQ:PSIX) and Vestas Wind Systems AS (OTCMKTS:VWDRY) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Power Solutions International and Vestas Wind Systems AS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Power Solutions International	0	2	1	0	2.33
Vestas Wind Systems AS	1	3	0	3	2.71

Power Solutions International presently has a consensus target price of $99.95, suggesting a potential upside of 137.13%. Given Power Solutions International’s higher probable upside, equities research analysts clearly believe Power Solutions International is more favorable than Vestas Wind Systems AS.

Insider & Institutional Ownership

22.3% of Power Solutions International shares are owned by institutional investors. 0.3% of Power Solutions International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Power Solutions International and Vestas Wind Systems AS”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Power Solutions International	$722.41 million	1.35	$113.99 million	$2.95	14.29
Vestas Wind Systems AS	$21.29 billion	1.27	$880.23 million	$0.33	27.45

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

Risk and Volatility

Power Solutions International has a beta of 2.01, meaning that its stock price is 101% more volatile than the S&P 500. Comparatively, Vestas Wind Systems AS has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Profitability

This table compares Power Solutions International and Vestas Wind Systems AS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Power Solutions International	10.03%	39.20%	15.71%
Vestas Wind Systems AS	4.44%	24.02%	3.33%

Summary

Power Solutions International beats Vestas Wind Systems AS 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 Vestas Wind Systems AS

Vestas Wind Systems A/S engages in the design, manufacture, installation, and services of wind turbines the United States, Denmark, and internationally. It operates in two segments, Power Solutions and Service. The Power Solutions segment offers onshore and offshore wind power plants, wind turbines, development sites, etc. The Service segment engages in the sale of service contracts, spare parts, and related activities. Vestas Wind Systems A/S was founded in 1898 and is headquartered in Aarhus, Denmark.