Ideal Power (NASDAQ:IPWR – Get Free Report) and Franklin Electric (NASDAQ:FELE – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Institutional & Insider Ownership
16.4% of Ideal Power shares are held by institutional investors. Comparatively, 80.0% of Franklin Electric shares are held by institutional investors. 5.4% of Ideal Power shares are held by company insiders. Comparatively, 2.7% of Franklin Electric shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and price targets for Ideal Power and Franklin Electric, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ideal Power | 0 | 1 | 0 | 0 | 2.00 |
| Franklin Electric | 0 | 1 | 0 | 0 | 2.00 |
Valuation & Earnings
This table compares Ideal Power and Franklin Electric”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ideal Power | $90,000.00 | 460.89 | -$10.42 million | ($1.23) | -3.97 |
| Franklin Electric | $2.02 billion | 2.17 | $180.31 million | $3.87 | 25.43 |
Franklin Electric has higher revenue and earnings than Ideal Power. Ideal Power is trading at a lower price-to-earnings ratio than Franklin Electric, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Ideal Power has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Franklin Electric has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.
Profitability
This table compares Ideal Power and Franklin Electric’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ideal Power | -58,031.58% | -66.48% | -58.83% |
| Franklin Electric | 8.71% | 14.05% | 9.47% |
Summary
Franklin Electric beats Ideal Power on 10 of the 12 factors compared between the two stocks.
About Ideal Power
Ideal Power Inc. focuses on the development and commercialization of its bidirectional bipolar junction TRANsistor solid-state switch technology. It also offers SymCool Power Module designed to meet low conduction loss needs of the solid-state circuit breaker market. The company serves electric and hybrid electric vehicles, electric vehicle charging, renewable energy and energy storage system power converters, uninterruptible power supplies for data centers, industrial motor drives, solid-state circuit breakers, distribution and transmission switches and controls, and other industrial and military markets. The company was formerly known as Ideal Power Converters Inc. and changed its name to Ideal Power Inc. in July 2013. Ideal Power Inc. was incorporated in 2007 and is headquartered in Austin, Texas.
About Franklin Electric
Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide. The company operates through Water Systems, Fueling Systems, and Distribution segments. The Water Systems segment offers submersible motors, drives, pumps, electronic controls, water treatment systems, monitoring devices, and related parts and equipment. Its motors and pumps are used principally for pumping clean water and wastewater in various residential, agricultural, municipal, and industrial applications; and manufactures electronic drives and controls that are used in motors for controlling functionality, as well as provides protection from various hazards, such as electrical surges, over-heating, and dry wells or tanks. The Fueling Systems segment provides pumps, pipes, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment primarily for use in fueling system applications. This segment serves other energy markets, such as power reliability systems, as well as includes electronic devices for online monitoring of the power utility, hydroelectric, and telecommunication and data center infrastructure. The Distribution segment sells to and provides presale support and specifications to the installing contractors. It sells products produced by the Water Systems segment. The company sells its products to wholesale and retail distributors, specialty distributors, original equipment manufacturers, industrial and petroleum equipment distributors, and oil and utility companies through its employee sales force and independent manufacturing representatives. Franklin Electric Co., Inc. was founded in 1944 and is headquartered in Fort Wayne, Indiana.
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