Tecogen (NASDAQ: TGEN) and Ideal Power (NASDAQ:IPWR) are both small-cap construction companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.

Valuation & Earnings

This table compares Tecogen and Ideal Power’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tecogen $28.16 million 2.66 $502,228.00 N/A N/A
Ideal Power $1.34 million 27.58 -$11.42 million ($1.11) -2.38

Tecogen has higher revenue and earnings than Ideal Power.

Risk & Volatility

Tecogen has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Ideal Power has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.

Insider & Institutional Ownership

9.1% of Tecogen shares are owned by institutional investors. Comparatively, 17.0% of Ideal Power shares are owned by institutional investors. 23.1% of Tecogen shares are owned by insiders. Comparatively, 10.0% of Ideal Power shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Tecogen and Ideal Power’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tecogen -0.13% -0.18% -0.11%
Ideal Power -895.37% -95.52% -83.42%

Analyst Recommendations

This is a summary of current recommendations and price targets for Tecogen and Ideal Power, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tecogen 0 1 3 0 2.75
Ideal Power 0 1 3 0 2.75

Tecogen currently has a consensus price target of $14.50, indicating a potential upside of 378.55%. Ideal Power has a consensus price target of $5.00, indicating a potential upside of 89.36%. Given Tecogen’s higher possible upside, research analysts clearly believe Tecogen is more favorable than Ideal Power.

Summary

Tecogen beats Ideal Power on 7 of the 10 factors compared between the two stocks.

Tecogen Company Profile

Tecogen Inc. designs, manufactures, sells and maintains cogeneration products, including combined heat and power (CHP), air conditioning systems and water heaters for residential, commercial, recreational and industrial use. The Company is engaged in the business of manufacturing and supporting CHP products based on engines fueled by natural gas. The Company manufactures over three types of CHP products, such as cogeneration units that supply electricity and hot water, chillers that provide air-conditioning and hot water, and water heaters. Its commercial product line includes the InVerde, InVerde e+ and TECOGEN cogeneration units; TECOCHILL chillers; Ilios high-efficiency water heaters, and Ultera emissions control technology. Its customers include hospitals and nursing homes, hotels and motels, office and retail buildings, and military installations. Its cogeneration systems and chillers use the engine, the TecoDrive 7400 model.

Ideal Power Company Profile

Ideal Power Inc. (Ideal Power) designs, markets and sells electrical power conversion products using its Power Packet Switching Architecture (PPSA) technology. The Company’s PPSA is a power conversion technology that utilizes standardized hardware with application specific embedded software. It sells products to systems integrators for integration into their system, which enable end users to manage their electricity consumption by reducing demand charges or fossil fuel consumption, integrating renewable energy sources and form their own microgrid. It focuses on licensing PPSA-based product designs to original equipment manufacturers (OEMs) within its target markets. Its products use multiple insulated gate bipolar transistors (IGBTs), which switch power in a direction, including direct current (DC) to alternating current (AC), or AC to DC. The PPSA uses indirect power flow in which power flows through input switches, and is temporarily stored in its AC link inductor.

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