Analyzing Twin Disc (TWIN) & PowerSecure International (POWR)

Twin Disc (NASDAQ: TWIN) and PowerSecure International (NYSE:POWR) are both industrial products companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Twin Disc and PowerSecure International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Twin Disc 0 1 0 0 2.00
PowerSecure International 0 0 0 0 N/A

Twin Disc presently has a consensus target price of $24.00, suggesting a potential downside of 12.73%. Given Twin Disc’s higher probable upside, equities research analysts clearly believe Twin Disc is more favorable than PowerSecure International.

Valuation and Earnings

This table compares Twin Disc and PowerSecure International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Twin Disc $168.18 million 1.90 -$6.29 million ($0.03) -916.36
PowerSecure International N/A N/A N/A ($0.19) -98.74

PowerSecure International has lower revenue, but higher earnings than Twin Disc. Twin Disc is trading at a lower price-to-earnings ratio than PowerSecure International, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

52.6% of Twin Disc shares are held by institutional investors. 27.5% of Twin Disc shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Twin Disc and PowerSecure International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Twin Disc -0.12% 0.27% 0.15%
PowerSecure International -9.44% -24.74% -12.37%

Summary

Twin Disc beats PowerSecure International on 8 of the 8 factors compared between the two stocks.

Twin Disc Company Profile

Twin Disc, Incorporated designs, manufactures and sells marine and heavy duty off-highway power transmission equipment. The Company operates through two segments: manufacturing and distribution. Its products include marine transmissions, surface drives, propellers and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches and controls systems. Its industrial products include clutches and pump drives sold to the agriculture, recycling, construction, and oil and gas markets. Its land-based transmission products include applications for oilfield and natural gas, military, and airport rescue and firefighting. Its marine and propulsion systems include marine transmission, controls, surface drives, propellers and boat management systems for the commercial, pleasure craft and patrol boat markets. Its other products include non-Company manufactured product sold through Company-owned distribution entities.

PowerSecure International Company Profile

PowerSecure International, Inc. is a provider of products and services to electric utilities and to their commercial, institutional and industrial customers. The Company operates through four segments: Distributed Generation, Solar Energy, Utility Infrastructure and Energy Efficiency. Its Distributed Generation segment manufactures, installs and operates electric generation equipment on site at a facility where the power is used, including commercial, institutional and industrial operations. The Solar Energy segment is operated by its PowerSecure Solar subsidiary. Its Solar Energy systems use photovoltaic (PV) solar panels to provide utilities and their customers with environmentally friendly power to augment their power requirements. The Utility Infrastructure solutions are focused on helping electric utilities design, upgrade and maintain infrastructure that enhances the efficiency of their grid systems. It has over two primary Energy Efficiency product and service offerings.

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