Pioneer Power Solutions (PPSI) & ABB (ABB) Critical Analysis
Pioneer Power Solutions (NASDAQ: PPSI) and ABB (NYSE:ABB) are both industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
This table compares Pioneer Power Solutions and ABB’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pioneer Power Solutions||0.09%||21.53%||7.39%|
Institutional & Insider Ownership
18.9% of Pioneer Power Solutions shares are owned by institutional investors. Comparatively, 4.1% of ABB shares are owned by institutional investors. 54.7% of Pioneer Power Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of current recommendations for Pioneer Power Solutions and ABB, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pioneer Power Solutions||0||0||1||0||3.00|
Pioneer Power Solutions currently has a consensus target price of $8.00, suggesting a potential upside of 31.15%. ABB has a consensus target price of $23.00, suggesting a potential upside of 0.66%. Given Pioneer Power Solutions’ stronger consensus rating and higher possible upside, research analysts plainly believe Pioneer Power Solutions is more favorable than ABB.
ABB pays an annual dividend of $0.73 per share and has a dividend yield of 3.2%. Pioneer Power Solutions does not pay a dividend. ABB pays out 67.6% of its earnings in the form of a dividend. Pioneer Power Solutions has increased its dividend for 5 consecutive years.
Earnings & Valuation
This table compares Pioneer Power Solutions and ABB’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Pioneer Power Solutions||$116.06 million||0.46||$6.56 million||$0.02||305.00|
|ABB||$33.56 billion||1.45||$4.26 billion||$1.08||21.16|
ABB has higher revenue and earnings than Pioneer Power Solutions. ABB is trading at a lower price-to-earnings ratio than Pioneer Power Solutions, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Pioneer Power Solutions has a beta of 2.29, meaning that its stock price is 129% more volatile than the S&P 500. Comparatively, ABB has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.
Pioneer Power Solutions beats ABB on 9 of the 16 factors compared between the two stocks.
About Pioneer Power Solutions
Pioneer Power Solutions, Inc. manufactures, sells and services a range of specialty electrical transmission, distribution and on-site power generation equipment for applications in the utility, industrial, commercial and backup power markets. The Company operates through two segments: Transmission & Distribution Solutions (T&D Solutions) and Critical Power Solutions (Critical Power). The T&D Solutions segment consists of two primary product categories: electrical transformers and switchgear. These solutions are marketed principally through its Pioneer Transformers Ltd., Jefferson Electric, Inc. and Pioneer CEP brand names. Its Critical Power business provides customers with power generation equipment, paralleling switchgear, related electrical distribution infrastructure, and a data collection and monitoring platform. These solutions are marketed by its operations in Minneapolis, doing business under the Pioneer Critical Power Inc. and Titan Energy Systems Inc. brand names.
ABB Ltd (ABB) is a holding company. The Company’s segments include Electrification Products, Robotics and Motion, Industrial Automation, Power Grids, and Corporate and Other. It operates through four divisions: Electrification Products, Robotics and Motion, Industrial Automation and Power Grids. It is engaged in serving customers in utilities, industry and transport and infrastructure. The Electrification Products segment manufactures and sells products and services including low and medium-voltage switchgear, breakers, switches and control products. The Robotics and Motion segment manufactures and sells motors, generators, variable speed drives and robots and robotics. The Industrial Automation segment develops and sells control and plant optimization systems, and automation products and solutions. The Power Grids segment supplies power and automation products, systems, and service and software solutions.
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