Contrasting Power Solutions International (NASDAQ:PSIX) and Enersys (NYSE:ENS)

Power Solutions International (NASDAQ:PSIX) and Enersys (NYSE:ENS) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Profitability

This table compares Power Solutions International and Enersys’ 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%
Enersys	9.29%	24.02%	11.42%

Volatility & Risk

Power Solutions International has a beta of 2.01, meaning that its share price is 101% more volatile than the S&P 500. Comparatively, Enersys has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Power Solutions International	0	1	1	1	3.00
Enersys	0	1	5	0	2.83

Power Solutions International currently has a consensus price target of $99.95, indicating a potential upside of 103.85%. Enersys has a consensus price target of $265.00, indicating a potential upside of 56.82%. Given Power Solutions International’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Power Solutions International is more favorable than Enersys.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Power Solutions International	$722.41 million	1.57	$113.99 million	$2.95	16.62
Enersys	$3.75 billion	1.62	$293.56 million	$9.34	18.09

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

Insider & Institutional Ownership

22.3% of Power Solutions International shares are owned by institutional investors. Comparatively, 94.9% of Enersys shares are owned by institutional investors. 0.3% of Power Solutions International shares are owned by insiders. Comparatively, 1.1% of Enersys shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Enersys beats Power Solutions International on 8 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 Enersys

EnerSys engages in the provision of stored energy solutions for industrial applications worldwide. It operates in four segments: Energy Systems, Motive Power, Specialty, and New Ventures. The Energy Systems segment offers uninterruptible power systems (UPS) applications for computer and computer-controlled systems, as well as telecommunications systems; switchgear and electrical control systems used in industrial facilities and electric utilities, large-scale energy storage, and energy pipelines; integrated power solutions and services to broadband, telecom, data center, and renewable and industrial customers; and thermally managed cabinets and enclosures for electronic equipment and batteries. The Motive Power segment provides power solutions for electric industrial forklifts used in manufacturing, warehousing, and other material handling applications, as well as automated guided vehicles, mining equipment, and diesel locomotive starting and other rail equipment. The Specialty offers batteries for starting, lighting, and ignition applications in automotive and over-the-road trucks; and energy solutions for satellites, spacecraft, commercial aircraft, military land vehicles, aircraft, submarines, ships, and other tactical vehicles, as well as medical devices and equipment. The New Venture segment provides energy storage and management systems for demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles. The company also offers battery chargers, power equipment, battery accessories, and outdoor cabinet enclosures, as well as related after-market and customer-support services for industrial batteries. It sells its products through a network of distributors, independent representatives, and internal sales forces. The company was formerly known as Yuasa, Inc. and changed its name to EnerSys in January 2001. EnerSys was founded in 1991 and is headquartered in Reading, Pennsylvania.