Ocean Power Technologies (NASDAQ:OPTT – Get Free Report) and Power Solutions International (NASDAQ:PSIX – Get Free Report) are both small-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.
Valuation & Earnings
This table compares Ocean Power Technologies and Power Solutions International”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ocean Power Technologies | $4.26 million | 1.33 | -$27.48 million | ($6.69) | -0.09 |
| Power Solutions International | $676.19 million | 1.67 | $113.99 million | $2.95 | 16.58 |
Power Solutions International has higher revenue and earnings than Ocean Power Technologies. Ocean Power Technologies is trading at a lower price-to-earnings ratio than Power Solutions International, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Ocean Power Technologies and Power Solutions International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ocean Power Technologies | -304.91% | -97.03% | -72.36% |
| Power Solutions International | 10.03% | 37.73% | 15.58% |
Institutional & Insider Ownership
11.9% of Ocean Power Technologies shares are owned by institutional investors. Comparatively, 22.3% of Power Solutions International shares are owned by institutional investors. 1.3% of Ocean Power Technologies shares are owned by company insiders. Comparatively, 0.3% of Power Solutions International shares are owned by company 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.
Risk and Volatility
Ocean Power Technologies has a beta of 2.78, suggesting that its stock price is 178% more volatile than the S&P 500. Comparatively, Power Solutions International has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Ocean Power Technologies and Power Solutions International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ocean Power Technologies | 0 | 0 | 1 | 1 | 3.50 |
| Power Solutions International | 0 | 1 | 1 | 1 | 3.00 |
Ocean Power Technologies currently has a consensus target price of $45.00, indicating a potential upside of 7,123.11%. Power Solutions International has a consensus target price of $99.95, indicating a potential upside of 104.31%. Given Ocean Power Technologies’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Ocean Power Technologies is more favorable than Power Solutions International.
Summary
Power Solutions International beats Ocean Power Technologies on 9 of the 13 factors compared between the two stocks.
About Ocean Power Technologies
Ocean Power Technologies, Inc. develops and commercializes proprietary power platforms that generate electricity by harnessing the renewable energy of ocean waves in North America, South America, Australia, and Asia. It offers PB3 PowerBuoy that generates power for use independent of the power grid in offshore locations. The company also provides Next Generation PowerBuoy; subsea battery systems; and software, controls, sensors, integration services, and marine installation services. In addition, it offers Wave Adaptive Modular Vessel (WAM-V) technology, which enables roaming capabilities for uncrewed maritime systems in waters; leases WAM-V robotics and access information; maritime domain awareness solutions; and strategic consulting services. Further, the company provides offshore data collection, integration, analytics, and real time communication for various applications. It serves public and private entities, and agencies that require remote offshore power. Ocean Power Technologies, Inc. was incorporated in 1984 and is headquartered in Monroe Township, New Jersey.
About Power Solutions International
Power Solutions International, Inc. engages in the design, manufacture, and trade of power systems and electrical power generation equipment. The firm provides integrated turnkey solutions to global original equipment manufacturers and end-user customers within the energy, industrial, and transportation end markets. The company was founded by Gary S. Winemaster, Kenneth J. Winemaster, and William Winemaster in February 1985 and is headquartered in Wood Dale, IL.
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