Head to Head Analysis: ABB (ABB) & Pioneer Pwr Sol Cmn (PPSI)

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

Institutional & Insider Ownership

4.8% of ABB shares are held by institutional investors. Comparatively, 19.7% of Pioneer Pwr Sol Cmn shares are held by institutional investors. 54.7% of Pioneer Pwr Sol Cmn shares are held 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.

Profitability

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

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

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. ABB has raised its dividend for 5 consecutive years.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ABB $33.83 billion 1.67 $1.90 billion $1.08 24.07
Pioneer Pwr Sol Cmn $114.40 million 0.58 -$1.06 million $0.62 12.18

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.

Analyst Recommendations

This is a summary of current ratings and target prices for ABB and Pioneer Pwr Sol Cmn, as reported by MarketBeat.

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

ABB presently has a consensus price target of $24.50, suggesting a potential downside of 5.77%. Pioneer Pwr Sol Cmn has a consensus price target of $8.00, suggesting a potential upside of 5.96%. Given Pioneer Pwr Sol Cmn’s stronger consensus rating and higher possible upside, analysts clearly believe Pioneer Pwr Sol Cmn is more favorable than ABB.

Risk and Volatility

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

Summary

ABB beats Pioneer Pwr Sol Cmn on 10 of the 17 factors compared between the two stocks.

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.

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.

Receive News & Ratings for ABB Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ABB and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply