TPI Composites (NASDAQ:TPIC) versus Power Solutions International (NASDAQ:PSIX) Head-To-Head Comparison

TPI Composites (NASDAQ:TPIC) and Power Solutions International (NASDAQ:PSIX) are both small-cap industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Earnings & Valuation

This table compares TPI Composites and Power Solutions International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TPI Composites	$1.46 billion	0.05	-$201.78 million	($3.75)	-0.40
Power Solutions International	$458.97 million	2.11	$26.31 million	$2.36	17.81

Power Solutions International has lower revenue, but higher earnings than TPI Composites. TPI Composites 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 TPI Composites and Power Solutions International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TPI Composites	-13.03%	N/A	-16.92%
Power Solutions International	12.46%	293.35%	15.94%

Volatility and Risk

TPI Composites has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500. Comparatively, Power Solutions International has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Institutional and Insider Ownership

75.2% of TPI Composites shares are owned by institutional investors. Comparatively, 22.3% of Power Solutions International shares are owned by institutional investors. 3.7% of TPI Composites shares are owned by company insiders. Comparatively, 0.6% of Power Solutions International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for TPI Composites and Power Solutions International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TPI Composites	1	4	1	1	2.29
Power Solutions International	0	0	0	0	0.00

TPI Composites currently has a consensus price target of $4.58, indicating a potential upside of 202.98%. Given TPI Composites’ stronger consensus rating and higher possible upside, research analysts plainly believe TPI Composites is more favorable than Power Solutions International.

Summary

TPI Composites beats Power Solutions International on 8 of the 14 factors compared between the two stocks.

About TPI Composites

TPI Composites, Inc. manufactures and sells composite wind blades, and related precision molding and assembly systems to original equipment manufacturers (OEMs) in the United States, Mexico, Europe, the Middle East, Africa, and India. It also provides composite solutions for the automotive industry; and field service inspection and repair services comprising diagnostic, repair, and maintenance services for wind blades to OEM customers, and wind farm owners and operators. The company was formerly known as LCSI Holding, Inc. and changed its name to TPI Composites, Inc. in 2008. TPI Composites, Inc. was founded in 1968 and is headquartered in Scottsdale, Arizona.

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.