Power Solutions International (NASDAQ:PSIX – Get Free Report) and Westport Fuel Systems (NASDAQ:WPRT – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.
Profitability
This table compares Power Solutions International and Westport Fuel Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Power Solutions International | 12.46% | 293.35% | 15.94% |
| Westport Fuel Systems | -8.01% | -25.57% | -11.61% |
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Power Solutions International and Westport Fuel Systems, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Power Solutions International | 0 | 0 | 0 | 0 | 0.00 |
| Westport Fuel Systems | 0 | 2 | 2 | 0 | 2.50 |
Institutional and Insider Ownership
22.3% of Power Solutions International shares are held by institutional investors. Comparatively, 21.3% of Westport Fuel Systems shares are held by institutional investors. 0.6% of Power Solutions International shares are held by company insiders. Comparatively, 0.8% of Westport Fuel Systems shares are held by company 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.
Risk and Volatility
Power Solutions International has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Westport Fuel Systems has a beta of 2.93, meaning that its stock price is 193% more volatile than the S&P 500.
Valuation and Earnings
This table compares Power Solutions International and Westport Fuel Systems”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 | $458.97 million | 1.94 | $26.31 million | $2.36 | 16.39 |
| Westport Fuel Systems | $331.80 million | 0.24 | -$49.72 million | ($1.49) | -3.07 |
Power Solutions International has higher revenue and earnings than Westport Fuel Systems. Westport Fuel Systems 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.
Summary
Power Solutions International beats Westport Fuel Systems on 9 of the 14 factors compared between the two stocks.
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.
About Westport Fuel Systems
Westport Fuel Systems Inc. engages in the engineering, manufacturing, and supplying alternative fuel systems and components for use in transportation applications in Europe, Asia, North America, South America, and internationally. The company operates through two segments, Original Equipment Manufacturers and Independent Aftermarket. It offers alternative fuel systems and components, such as liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), renewable natural gas or biomethane, and hydrogen; and pressure regulators, injectors, electronic control units, valves and filters, complete bi-fuel, mono-fuel and dual-fuel LPG and natural gas conversion kits and high-pressure hydrogen components. The company provides Westport’s LNG high pressure direct injection 2.0 fuel system and bi-fuel products; offers turnkey solutions covering all process phases, including prototyping, development, calibration, validation, homologation, vehicle conversion and logistic services, as well as systems for diesel-powered vehicles; and supplies hydrogen fuel system components for light, medium, and heavy-duty applications. It offers its products under the AFS, BRC, Emer, GFI, HPDI, Stako, Prins, Zavoli, OMVL, TA Gas Technology, Vialle, and Valtek brands. The company was formerly known as Westport Innovations Inc. and changed its name to Westport Fuel Systems Inc. in June 2016. Westport Fuel Systems Inc. was incorporated in 1995 and is headquartered in Vancouver, Canada.
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