Pioneer Pwr Sol Cmn (OTCMKTS: PPSI) and ABB (NYSE:ABB) are both companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.

Insider & Institutional Ownership

19.7% of Pioneer Pwr Sol Cmn shares are owned by institutional investors. Comparatively, 4.8% of ABB shares are owned by institutional investors. 54.7% of Pioneer Pwr Sol Cmn shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

ABB pays an annual dividend of $0.73 per share and has a dividend yield of 2.8%. Pioneer Pwr Sol Cmn does not pay a dividend. ABB pays out 67.6% of its earnings in the form of a dividend. Pioneer Pwr Sol Cmn has increased its dividend for 5 consecutive years.

Profitability

This table compares Pioneer Pwr Sol Cmn and ABB’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pioneer Pwr Sol Cmn -0.84% 24.81% 8.33%
ABB 6.79% 18.65% 6.59%

Analyst Recommendations

This is a breakdown of current ratings for Pioneer Pwr Sol Cmn and ABB, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pioneer Pwr Sol Cmn 0 0 1 0 3.00
ABB 2 3 7 0 2.42

Pioneer Pwr Sol Cmn presently has a consensus target price of $8.00, indicating a potential upside of 5.96%. ABB has a consensus target price of $24.50, indicating a potential downside of 4.48%. Given Pioneer Pwr Sol Cmn’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Pioneer Pwr Sol Cmn is more favorable than ABB.

Risk and Volatility

Pioneer Pwr Sol Cmn has a beta of -856.96, indicating that its share price is 85,796% less volatile than the S&P 500. Comparatively, ABB has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Earnings and Valuation

This table compares Pioneer Pwr Sol Cmn and ABB’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pioneer Pwr Sol Cmn $114.40 million 0.58 -$1.06 million $0.62 12.18
ABB $33.83 billion 1.64 $1.90 billion $1.08 23.75

ABB has higher revenue and earnings than Pioneer Pwr Sol Cmn. Pioneer Pwr Sol Cmn is trading at a lower price-to-earnings ratio than ABB, indicating that it is currently the more affordable of the two stocks.

Summary

ABB beats Pioneer Pwr Sol Cmn on 9 of the 17 factors compared between the two stocks.

About Pioneer Pwr Sol Cmn

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.

About ABB

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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