Financial Comparison: Power Solutions International (PSIX) versus Kubota (KUBTY)

Power Solutions International (OTCMKTS: PSIX) and Kubota (OTCMKTS:KUBTY) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings for Power Solutions International and Kubota, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Power Solutions International 0 3 1 0 2.25
Kubota 1 0 0 0 1.00

Power Solutions International presently has a consensus target price of $13.50, suggesting a potential upside of 77.40%. Given Power Solutions International’s stronger consensus rating and higher possible upside, analysts clearly believe Power Solutions International is more favorable than Kubota.

Insider & Institutional Ownership

5.8% of Power Solutions International shares are owned by institutional investors. Comparatively, 0.3% of Kubota shares are owned by institutional investors. 56.5% of Power Solutions International shares are owned by insiders. Comparatively, 0.0% of Kubota shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Power Solutions International has a beta of 2.77, suggesting that its share price is 177% more volatile than the S&P 500. Comparatively, Kubota has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Valuation and Earnings

This table compares Power Solutions International and Kubota’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 $389.45 million 0.27 $14.27 million $0.93 8.18
Kubota $3.53 billion 7.24 $316.27 million N/A N/A

Kubota has higher revenue and earnings than Power Solutions International.

Profitability

This table compares Power Solutions International and Kubota’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Power Solutions International N/A N/A N/A
Kubota N/A N/A N/A

Summary

Power Solutions International beats Kubota on 6 of the 9 factors compared between the two stocks.

Power Solutions International Company Profile

Power Solutions International, Inc. is a producer and distributor of a range of low-emission power systems that run on non-diesel fuels, such as natural gas, propane and gasoline. The Company’s industrial power systems are used by original equipment manufacturers (OEMs) in a range of industries with a diversified set of applications, including stationary electricity generators, oil and gas equipment, forklifts, aerial work platforms, industrial sweepers, arbor equipment, agricultural and turf equipment, aircraft ground support equipment, construction and irrigation equipment, and other industrial equipment. The Company provides alternative fuel power systems for OEMs of off-highway industrial equipment and on-road medium trucks and busses. In addition to its emission-certified power systems, the Company produces and distributes non-emission-certified power systems for industrial OEMs for particular applications in markets without emission standards.

Kubota Company Profile

KUBOTA Corporation is a manufacturer of a range of machinery, and other industrial and consumer products. The Company operates through three segments: Farm & Industrial Machinery, Water & Environment, and Other. The Farm & Industrial Machinery segment is engaged in the manufacture and sale of products, which include farm equipment, engines, construction machinery and electronic equipped machinery. Its Water & Environment segment engages in the manufacture and sale of pipe‐related products, such as ductile iron pipes, plastic pipes, pumps, valves and other products; environment‐related products, including environmental control plants and other products, and social infrastructure‐related products, such as industrial castings, ceramics, spiral‐welded steel pipes and other products. The Other segment is engaged in services and other businesses. The Company has operations in Japan, the United States, Germany, China, Thailand and other Southeast Asian regions.

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