PowerSecure International (POWR) versus Twin Disc (TWIN) Critical Contrast

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

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PowerSecure International N/A N/A N/A ($0.19) -98.74
Twin Disc $168.18 million 1.88 -$6.29 million ($0.03) -908.70

PowerSecure International has higher earnings, but lower revenue 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.

Institutional and Insider Ownership

52.6% of Twin Disc shares are held by institutional investors. 27.5% of Twin Disc shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

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

Analyst Ratings

This is a summary of current ratings for PowerSecure International and Twin Disc, as reported by MarketBeat.com.

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

Twin Disc has a consensus target price of $24.00, indicating a potential downside of 11.99%. Given Twin Disc’s higher possible upside, analysts clearly believe Twin Disc is more favorable than PowerSecure International.

Summary

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

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.

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.

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