Pioneer Pwr Sol Cmn (OTCMKTS: PPSI) and Babcock (NYSE:BW) are both small-cap companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Institutional and Insider Ownership

19.7% of Pioneer Pwr Sol Cmn shares are held by institutional investors. Comparatively, 64.6% of Babcock shares are held by institutional investors. 54.7% of Pioneer Pwr Sol Cmn shares are held by company insiders. Comparatively, 2.5% of Babcock shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Pioneer Pwr Sol Cmn and Babcock’s top-line 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 12.26
Babcock $1.58 billion 0.13 -$115.64 million ($7.18) -0.65

Pioneer Pwr Sol Cmn has higher earnings, but lower revenue than Babcock. Babcock 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.

Profitability

This table compares Pioneer Pwr Sol Cmn and Babcock’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%
Babcock -22.48% -50.88% -15.29%

Risk & Volatility

Pioneer Pwr Sol Cmn has a beta of -856.96, indicating that its stock price is 85,796% less volatile than the S&P 500. Comparatively, Babcock has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Pioneer Pwr Sol Cmn and Babcock, 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
Babcock 1 3 0 0 1.75

Pioneer Pwr Sol Cmn presently has a consensus target price of $8.00, suggesting a potential upside of 5.26%. Babcock has a consensus target price of $6.35, suggesting a potential upside of 35.11%. Given Babcock’s higher probable upside, analysts clearly believe Babcock is more favorable than Pioneer Pwr Sol Cmn.

Summary

Pioneer Pwr Sol Cmn beats Babcock on 9 of the 13 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 Babcock

Babcock & Wilcox Enterprises, Inc. is a technology-based provider of fossil and renewable power generation and environmental equipment that includes a suite of boiler products and environmental systems, and services for power and industrial uses. The Company operates in three segments: Power, Renewable and Industrial. Through its Power segment, the Company provides the supply of and aftermarket services for steam-generating, environmental, and auxiliary equipment for power generation and other industrial applications. The Renewable segment provides steam-generating systems, environmental and auxiliary equipment for the waste-to-energy and biomass power generation industries, and plant operations and maintenance services for its systems and equipment. The Industrial segment focuses on custom-engineered cooling, environmental, noise abatement and industrial equipment along with related aftermarket services.

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