Analyzing Power Solutions International (NASDAQ:PSIX) & Erayak Power Solution Group (NASDAQ:RAYA)
by Kim Johansen · The Markets DailyErayak Power Solution Group (NASDAQ:RAYA – Get Free Report) and Power Solutions International (NASDAQ:PSIX – Get Free Report) are both small-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.
Insider & Institutional Ownership
0.3% of Erayak Power Solution Group shares are held by institutional investors. Comparatively, 22.3% of Power Solutions International shares are held by institutional investors. 0.3% of Power Solutions International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations and price targets for Erayak Power Solution Group and Power Solutions International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Erayak Power Solution Group | 1 | 0 | 0 | 0 | 1.00 |
| Power Solutions International | 0 | 1 | 1 | 1 | 3.00 |
Power Solutions International has a consensus price target of $99.95, suggesting a potential upside of 175.50%. Given Power Solutions International’s stronger consensus rating and higher probable upside, analysts clearly believe Power Solutions International is more favorable than Erayak Power Solution Group.
Risk & Volatility
Erayak Power Solution Group has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Power Solutions International has a beta of 2.01, suggesting that its share price is 101% more volatile than the S&P 500.
Valuation and Earnings
This table compares Erayak Power Solution Group and Power Solutions International”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Erayak Power Solution Group | $22.85 million | 0.05 | -$1.39 million | N/A | N/A |
| Power Solutions International | $722.41 million | 1.16 | $113.99 million | $2.95 | 12.30 |
Power Solutions International has higher revenue and earnings than Erayak Power Solution Group.
Profitability
This table compares Erayak Power Solution Group and Power Solutions International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Erayak Power Solution Group | N/A | N/A | N/A |
| Power Solutions International | 10.03% | 37.73% | 15.58% |
Summary
Power Solutions International beats Erayak Power Solution Group on 13 of the 13 factors compared between the two stocks.
About Erayak Power Solution Group
Erayak Power Solution Group Inc., through its subsidiaries, engages in the research and development, manufacture, and wholesale and retail of power solution products. Its product portfolio includes sine wave and off-grid inverters, inverter and gasoline generators, battery and smart chargers, and custom-designed products. The company's products are used in agricultural and industrial vehicles, recreational vehicles, electrical appliances, and outdoor living products. It operates in China, France, Poland, Mexico, and the United Kingdom. The company was incorporated in 2019 and is based in Wenzhou, the People's Republic of China. Erayak Power Solution Group Inc. operates as a subsidiary of Erayak International Limited.
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.