Ocean Power Technologies (NASDAQ:OPTT) and Power Solutions International (NASDAQ:PSIX) Head-To-Head Survey
by Mitch Edgeman · The Markets DailyPower Solutions International (NASDAQ:PSIX – Get Free Report) and Ocean Power Technologies (NASDAQ:OPTT – Get Free Report) are both small-cap industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Power Solutions International and Ocean Power Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Power Solutions International | 0 | 1 | 1 | 1 | 3.00 |
| Ocean Power Technologies | 0 | 0 | 1 | 1 | 3.50 |
Power Solutions International currently has a consensus target price of $99.95, indicating a potential upside of 111.89%. Ocean Power Technologies has a consensus target price of $45.00, indicating a potential upside of 6,827.34%. Given Ocean Power Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Ocean Power Technologies is more favorable than Power Solutions International.
Insider and Institutional Ownership
22.3% of Power Solutions International shares are held by institutional investors. Comparatively, 11.9% of Ocean Power Technologies shares are held by institutional investors. 0.3% of Power Solutions International shares are held by insiders. Comparatively, 1.3% of Ocean Power Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Power Solutions International and Ocean Power Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Power Solutions International | 10.03% | 37.73% | 15.58% |
| Ocean Power Technologies | -304.91% | -97.03% | -72.36% |
Volatility & Risk
Power Solutions International has a beta of 2.01, suggesting that its share price is 101% more volatile than the S&P 500. Comparatively, Ocean Power Technologies has a beta of 2.78, suggesting that its share price is 178% more volatile than the S&P 500.
Valuation and Earnings
This table compares Power Solutions International and Ocean Power Technologies”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 | $722.41 million | 1.51 | $113.99 million | $2.95 | 15.99 |
| Ocean Power Technologies | $4.26 million | 1.39 | -$27.48 million | ($6.69) | -0.10 |
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.
Summary
Power Solutions International beats Ocean Power Technologies on 9 of the 13 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 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.