Power Solutions International (OTCMKTS: PSIX) and Kubota (OTCMKTS:KUBTY) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.
Earnings & Valuation
This table compares Power Solutions International and Kubota’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Power Solutions International||$389.45 million||0.23||$14.27 million||N/A||N/A|
|Kubota||$3.53 billion||6.65||$316.27 million||N/A||N/A|
Kubota has higher revenue and earnings than Power Solutions International.
This table compares Power Solutions International and Kubota’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Power Solutions International||N/A||N/A||N/A|
Institutional and Insider Ownership
5.8% of Power Solutions International shares are owned by institutional investors. Comparatively, 0.3% of Kubota shares are owned by institutional investors. 56.5% of Power Solutions International shares are owned by insiders. Comparatively, 0.0% of Kubota shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
Power Solutions International has a beta of 2.45, meaning that its share price is 145% more volatile than the S&P 500. Comparatively, Kubota has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.
This is a breakdown of current ratings for Power Solutions International and Kubota, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Power Solutions International||0||2||1||0||2.33|
Power Solutions International currently has a consensus price target of $9.00, indicating a potential upside of 37.40%. Given Power Solutions International’s stronger consensus rating and higher probable upside, analysts clearly believe Power Solutions International is more favorable than Kubota.
Power Solutions International beats Kubota on 6 of the 9 factors compared between the two stocks.
About Power Solutions International
Power Solutions International, Inc. is a producer and distributor of a range of low-emission power systems that run on non-diesel fuels, such as natural gas, propane and gasoline. The Company’s industrial power systems are used by original equipment manufacturers (OEMs) in a range of industries with a diversified set of applications, including stationary electricity generators, oil and gas equipment, forklifts, aerial work platforms, industrial sweepers, arbor equipment, agricultural and turf equipment, aircraft ground support equipment, construction and irrigation equipment, and other industrial equipment. The Company provides alternative fuel power systems for OEMs of off-highway industrial equipment and on-road medium trucks and busses. In addition to its emission-certified power systems, the Company produces and distributes non-emission-certified power systems for industrial OEMs for particular applications in markets without emission standards.
KUBOTA Corporation is a manufacturer of a range of machinery, and other industrial and consumer products. The Company operates through three segments: Farm & Industrial Machinery, Water & Environment, and Other. The Farm & Industrial Machinery segment is engaged in the manufacture and sale of products, which include farm equipment, engines, construction machinery and electronic equipped machinery. Its Water & Environment segment engages in the manufacture and sale of pipe‐related products, such as ductile iron pipes, plastic pipes, pumps, valves and other products; environment‐related products, including environmental control plants and other products, and social infrastructure‐related products, such as industrial castings, ceramics, spiral‐welded steel pipes and other products. The Other segment is engaged in services and other businesses. The Company has operations in Japan, the United States, Germany, China, Thailand and other Southeast Asian regions.
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