Power Solutions International (OTCMKTS: PSIX) and Quinpario Acquisition (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 profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Valuation and Earnings

This table compares Power Solutions International and Quinpario Acquisition’s top-line 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 0.23 $14.27 million N/A N/A
Quinpario Acquisition $705.52 million 0.08 -$66.87 million ($3.01) -0.74

Power Solutions International has higher earnings, but lower revenue than Quinpario Acquisition.

Insider and Institutional Ownership

5.8% of Power Solutions International shares are held by institutional investors. Comparatively, 35.4% of Quinpario Acquisition shares are held by institutional investors. 56.5% of Power Solutions International shares are held by insiders. Comparatively, 20.0% of Quinpario Acquisition shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Power Solutions International and Quinpario Acquisition’s 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
Quinpario Acquisition -9.95% N/A -0.53%

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, Quinpario Acquisition has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Power Solutions International and Quinpario Acquisition, as reported by MarketBeat.com.

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

Power Solutions International currently has a consensus target price of $13.50, indicating a potential upside of 109.63%. Given Power Solutions International’s higher possible upside, analysts clearly believe Power Solutions International is more favorable than Quinpario Acquisition.

Summary

Power Solutions International beats Quinpario Acquisition on 8 of the 10 factors compared between the two stocks.

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.

Quinpario Acquisition Company Profile

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.

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