Power Solutions International (OTCMKTS: PSIX) and Jason Industries (NASDAQ:JASN) are both small-cap auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Power Solutions International and Jason Industries’ 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
Jason Industries -9.95% N/A -0.53%

Institutional and Insider Ownership

5.8% of Power Solutions International shares are owned by institutional investors. Comparatively, 35.5% of Jason Industries shares are owned by institutional investors. 56.5% of Power Solutions International shares are owned by insiders. Comparatively, 20.0% of Jason Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Power Solutions International and Jason Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Power Solutions International 0 3 1 0 2.25
Jason Industries 0 0 0 0 N/A

Power Solutions International presently has a consensus price target of $13.50, suggesting a potential upside of 80.00%. Given Power Solutions International’s higher probable upside, equities analysts plainly believe Power Solutions International is more favorable than Jason Industries.

Volatility & Risk

Power Solutions International has a beta of 2.77, indicating that its stock price is 177% more volatile than the S&P 500. Comparatively, Jason Industries has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.

Valuation & Earnings

This table compares Power Solutions International and Jason Industries’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Power Solutions International $389.45 million 0.26 $14.27 million N/A N/A
Jason Industries $705.52 million 0.07 -$66.87 million ($3.01) -0.67

Power Solutions International has higher earnings, but lower revenue than Jason Industries.

Summary

Power Solutions International beats Jason Industries on 8 of the 10 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.

About Jason Industries

Jason Industries is the parent company to a global family of manufacturing leaders within the seating, finishing, components and automotive acoustics markets, including Assembled Products (Buffalo Grove, Ill.), Janesville Acoustics (Southfield, Mich.), Metalex (Libertyville, Ill.), Milsco (Milwaukee, Wis.), Osborn (Richmond, Indiana and Burgwald, Germany) and Sealeze (Richmond, Va.). All Jason companies utilize the Jason Business System, a collaborative manufacturing strategy applicable to a diverse group of companies that includes business principles and processes to ensure best-in-class results and collective strength. Headquartered in Milwaukee, Wis., Jason employs more than 4,000 individuals in 15 countries.

Receive News & Stock Ratings for Power Solutions International Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Power Solutions International Inc and related stocks with our FREE daily email newsletter.