Babcock (NYSE: BW) and Pioneer Pwr Sol Cmn (OTCMKTS:PPSI) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.
Valuation & Earnings
This table compares Babcock and Pioneer Pwr Sol Cmn’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Babcock||$1.58 billion||0.13||-$115.64 million||($7.18)||-0.65|
|Pioneer Pwr Sol Cmn||$114.40 million||0.58||-$1.06 million||$0.62||12.26|
Pioneer Pwr Sol Cmn has lower revenue, but higher earnings than Babcock. Babcock is trading at a lower price-to-earnings ratio than Pioneer Pwr Sol Cmn, indicating that it is currently the more affordable of the two stocks.
This table compares Babcock and Pioneer Pwr Sol Cmn’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pioneer Pwr Sol Cmn||-0.84%||24.81%||8.33%|
This is a summary of recent ratings and recommmendations for Babcock and Pioneer Pwr Sol Cmn, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pioneer Pwr Sol Cmn||0||0||1||0||3.00|
Babcock currently has a consensus price target of $6.35, suggesting a potential upside of 35.11%. Pioneer Pwr Sol Cmn has a consensus price target of $8.00, suggesting a potential upside of 5.26%. Given Babcock’s higher probable upside, analysts clearly believe Babcock is more favorable than Pioneer Pwr Sol Cmn.
Risk and Volatility
Babcock has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, Pioneer Pwr Sol Cmn has a beta of -856.96, suggesting that its share price is 85,796% less volatile than the S&P 500.
Insider and Institutional Ownership
64.6% of Babcock shares are held by institutional investors. Comparatively, 19.7% of Pioneer Pwr Sol Cmn shares are held by institutional investors. 2.5% of Babcock shares are held by company insiders. Comparatively, 54.7% of Pioneer Pwr Sol Cmn shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Pioneer Pwr Sol Cmn beats Babcock on 9 of the 13 factors compared between the two stocks.
Babcock & Wilcox Enterprises, Inc. is a technology-based provider of fossil and renewable power generation and environmental equipment that includes a suite of boiler products and environmental systems, and services for power and industrial uses. The Company operates in three segments: Power, Renewable and Industrial. Through its Power segment, the Company provides the supply of and aftermarket services for steam-generating, environmental, and auxiliary equipment for power generation and other industrial applications. The Renewable segment provides steam-generating systems, environmental and auxiliary equipment for the waste-to-energy and biomass power generation industries, and plant operations and maintenance services for its systems and equipment. The Industrial segment focuses on custom-engineered cooling, environmental, noise abatement and industrial equipment along with related aftermarket services.
About Pioneer Pwr Sol Cmn
Pioneer Power Solutions, Inc. manufactures, sells and services a range of specialty electrical transmission, distribution and on-site power generation equipment for applications in the utility, industrial, commercial and backup power markets. The Company operates through two segments: Transmission & Distribution Solutions (T&D Solutions) and Critical Power Solutions (Critical Power). The T&D Solutions segment consists of two primary product categories: electrical transformers and switchgear. These solutions are marketed principally through its Pioneer Transformers Ltd., Jefferson Electric, Inc. and Pioneer CEP brand names. Its Critical Power business provides customers with power generation equipment, paralleling switchgear, related electrical distribution infrastructure, and a data collection and monitoring platform. These solutions are marketed by its operations in Minneapolis, doing business under the Pioneer Critical Power Inc. and Titan Energy Systems Inc. brand names.
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