Pioneer Pwr Sol Cmn (OTCMKTS: PPSI) and Twin Disc (NASDAQ:TWIN) are both small-cap companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares Pioneer Pwr Sol Cmn and Twin Disc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pioneer Pwr Sol Cmn -0.84% 24.81% 8.33%
Twin Disc -0.12% 0.27% 0.15%

Earnings and Valuation

This table compares Pioneer Pwr Sol Cmn and Twin Disc’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pioneer Pwr Sol Cmn $114.40 million 0.58 -$1.06 million $0.62 12.18
Twin Disc $168.18 million 1.85 -$6.29 million ($0.02) -1,341.00

Pioneer Pwr Sol Cmn has higher earnings, but lower revenue than Twin Disc. Twin Disc is trading at a lower price-to-earnings ratio than Pioneer Pwr Sol Cmn, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Pioneer Pwr Sol Cmn has a beta of -856.96, meaning that its share price is 85,796% less volatile than the S&P 500. Comparatively, Twin Disc has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Pioneer Pwr Sol Cmn and Twin Disc, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pioneer Pwr Sol Cmn 0 0 1 0 3.00
Twin Disc 0 1 0 0 2.00

Pioneer Pwr Sol Cmn currently has a consensus target price of $8.00, indicating a potential upside of 5.96%. Twin Disc has a consensus target price of $24.00, indicating a potential downside of 10.51%. Given Pioneer Pwr Sol Cmn’s stronger consensus rating and higher probable upside, analysts plainly believe Pioneer Pwr Sol Cmn is more favorable than Twin Disc.

Institutional & Insider Ownership

19.7% of Pioneer Pwr Sol Cmn shares are owned by institutional investors. Comparatively, 52.6% of Twin Disc shares are owned by institutional investors. 54.7% of Pioneer Pwr Sol Cmn shares are owned by insiders. Comparatively, 27.5% of Twin Disc 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.

Summary

Pioneer Pwr Sol Cmn beats Twin Disc on 8 of the 14 factors compared between the two stocks.

About Pioneer Pwr Sol Cmn

Pioneer Power Solutions, Inc. manufactures, sells and services a range of specialty electrical transmission, distribution and on-site power generation equipment for applications in the utility, industrial, commercial and backup power markets. The Company operates through two segments: Transmission & Distribution Solutions (T&D Solutions) and Critical Power Solutions (Critical Power). The T&D Solutions segment consists of two primary product categories: electrical transformers and switchgear. These solutions are marketed principally through its Pioneer Transformers Ltd., Jefferson Electric, Inc. and Pioneer CEP brand names. Its Critical Power business provides customers with power generation equipment, paralleling switchgear, related electrical distribution infrastructure, and a data collection and monitoring platform. These solutions are marketed by its operations in Minneapolis, doing business under the Pioneer Critical Power Inc. and Titan Energy Systems Inc. brand names.

About Twin Disc

Twin Disc, Incorporated designs, manufactures and sells marine and heavy duty off-highway power transmission equipment. The Company operates through two segments: manufacturing and distribution. Its products include marine transmissions, surface drives, propellers and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches and controls systems. Its industrial products include clutches and pump drives sold to the agriculture, recycling, construction, and oil and gas markets. Its land-based transmission products include applications for oilfield and natural gas, military, and airport rescue and firefighting. Its marine and propulsion systems include marine transmission, controls, surface drives, propellers and boat management systems for the commercial, pleasure craft and patrol boat markets. Its other products include non-Company manufactured product sold through Company-owned distribution entities.

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