Analyzing Eaton Corporation, PLC (ETN) and Power Solutions International (PSIX)
Eaton Corporation, PLC (NYSE: ETN) and Power Solutions International (OTCMKTS:PSIX) are both industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.
This is a breakdown of recent ratings for Eaton Corporation, PLC and Power Solutions International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Eaton Corporation, PLC||3||11||6||0||2.15|
|Power Solutions International||0||3||1||0||2.25|
Eaton Corporation, PLC presently has a consensus price target of $82.54, suggesting a potential upside of 8.18%. Power Solutions International has a consensus price target of $13.50, suggesting a potential upside of 42.26%. Given Power Solutions International’s stronger consensus rating and higher probable upside, analysts plainly believe Power Solutions International is more favorable than Eaton Corporation, PLC.
Eaton Corporation, PLC pays an annual dividend of $2.40 per share and has a dividend yield of 3.1%. Power Solutions International does not pay a dividend. Eaton Corporation, PLC pays out 55.0% of its earnings in the form of a dividend. Eaton Corporation, PLC has increased its dividend for 7 consecutive years.
Institutional and Insider Ownership
76.8% of Eaton Corporation, PLC shares are held by institutional investors. Comparatively, 5.9% of Power Solutions International shares are held by institutional investors. 0.8% of Eaton Corporation, PLC shares are held by insiders. Comparatively, 56.5% of Power Solutions International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares Eaton Corporation, PLC and Power Solutions International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Eaton Corporation, PLC||14.21%||12.89%||6.43%|
|Power Solutions International||N/A||N/A||N/A|
Valuation & Earnings
This table compares Eaton Corporation, PLC and Power Solutions International’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Eaton Corporation, PLC||$19.75 billion||1.70||$1.92 billion||$4.36||17.50|
|Power Solutions International||$389.45 million||0.33||$14.27 million||N/A||N/A|
Eaton Corporation, PLC has higher revenue and earnings than Power Solutions International.
Volatility & Risk
Eaton Corporation, PLC has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Power Solutions International has a beta of 2.84, meaning that its share price is 184% more volatile than the S&P 500.
Eaton Corporation, PLC beats Power Solutions International on 10 of the 15 factors compared between the two stocks.
Eaton Corporation, PLC Company Profile
Eaton Corporation (Eaton) is a diversified power management company. It is engaged in the manufacturing of electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use, and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety. On January 1, 2011, it closed the acquisition of the Tuthill Coupling Group, which is a division of the Tuthill Corporation. It has five segments: Electrical Americas and Electrical Rest of World; Hydraulics; Aerospace; Truck, and Automotive. On October 1, 2010, it acquired CopperLogic, Inc. On July 15, 2010, it acquired EMC Engineers, Inc. In May 2011, it acquired Internormen Technology Group. In August 2011, it acquired IE Power, Inc. In December 2011, it acquired E.A. Pedersen Company.
Power Solutions International Company Profile
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.
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