Financial Analysis: Power Solutions International (NASDAQ:PSIX) & Coates International (OTCMKTS:COTE)

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

Valuation and Earnings

This table compares Power Solutions International and Coates International”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	$475.97 million	1.18	$26.31 million	$3.01	8.14
Coates International	N/A	N/A	N/A	N/A	N/A

Power Solutions International has higher revenue and earnings than Coates International.

Insider & Institutional Ownership

22.3% of Power Solutions International shares are owned by institutional investors. 0.6% of Power Solutions International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Power Solutions International and Coates International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Power Solutions International	0	0	1	0	3.00
Coates International	0	0	0	0	0.00

Given Coates International’s higher probable upside, analysts clearly believe Coates International is more favorable than Power Solutions International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Power Solutions International	12.46%	293.35%	15.94%
Coates International	N/A	N/A	N/A

Summary

Power Solutions International beats Coates International on 8 of the 9 factors compared between the two stocks.

About Power Solutions International

Power Solutions International, Inc. engages in the design, manufacture, and trade of power systems and electrical power generation equipment. The firm provides integrated turnkey solutions to global original equipment manufacturers and end-user customers within the energy, industrial, and transportation end markets. The company was founded by Gary S. Winemaster, Kenneth J. Winemaster, and William Winemaster in February 1985 and is headquartered in Wood Dale, IL.

About Coates International

Coates International, Ltd. develops and sells Coates Spherical Rotary Valve (CSRV) system technology for use in various piston-driven internal combustion engines in the United States and internationally. The company's CSRV system technology replaces the intake and exhausts conventional poppet valves used in various piston-driven stationary, automotive, motorcycle, and marine engines. Its CSRV system technology is used in various applications, including engines for electric power generators for home use, industrial complexes, and grid installations; and engines to power motorcycles, automobiles, light and heavy trucks, machinery, railroads, marine engines, military equipment, light aircraft, helicopters, lawn mowers, snowmobiles and jet skis, etc. Coates International, Ltd. was founded in 1988 and is headquartered in Wall Township, New Jersey.