Financial Review: Pioneer Power Solutions (NASDAQ:PPSI) versus Kone Oyj (OTCMKTS:KNYJY)

Pioneer Power Solutions (NASDAQ:PPSI) and Kone Oyj (OTCMKTS:KNYJY) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.

Profitability

This table compares Pioneer Power Solutions and Kone Oyj’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pioneer Power Solutions	105.23%	-11.16%	-6.82%
Kone Oyj	8.69%	39.38%	11.08%

Valuation and Earnings

This table compares Pioneer Power Solutions and Kone Oyj”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pioneer Power Solutions	$22.88 million	2.39	$31.85 million	($0.68)	-7.24
Kone Oyj	$12.01 billion	2.46	$1.03 billion	$1.03	31.63

Kone Oyj has higher revenue and earnings than Pioneer Power Solutions. Pioneer Power Solutions is trading at a lower price-to-earnings ratio than Kone Oyj, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Pioneer Power Solutions and Kone Oyj, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pioneer Power Solutions	0	1	1	0	2.50
Kone Oyj	1	1	0	0	1.50

Pioneer Power Solutions currently has a consensus price target of $12.00, indicating a potential upside of 143.90%. Given Pioneer Power Solutions’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Pioneer Power Solutions is more favorable than Kone Oyj.

Risk and Volatility

Pioneer Power Solutions has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, Kone Oyj has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.

Institutional & Insider Ownership

10.9% of Pioneer Power Solutions shares are owned by institutional investors. 26.6% of Pioneer Power Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

About Pioneer Power Solutions

Pioneer Power Solutions, Inc., together with its subsidiaries, design, manufacture, integrate, refurbish, distribute, sell, and service electric power systems, distributed energy resources, power generation equipment, and mobile EV charging solutions. The company operates through Electrical Infrastructure Equipment and Critical Power Solutions segments. The Electrical Infrastructure Equipment segment provides electric power systems that help customers effectively and efficiently protect, control, transfer, monitor, and manage their electric energy requirements. It also offers e-Bloc power systems, power systems, and circuit protective equipment related products. The Critical Power Solutions segment provides power generation equipment maintenance, repairs, remote monitoring, and equipment services, and EV charging solutions. This segment offers suite generator on a truck and power generation equipment, and repair, maintenance, and support services. Pioneer Power Solutions, Inc. serves utility, industrial, and commercial markets. The company was founded in 2008 and is headquartered in Fort Lee, New Jersey.

About Kone Oyj

KONE Oyj, together with its subsidiaries, engages in the elevator and escalator business worldwide. The company provides elevators, escalators, and automatic building doors. It offers maintenance services; and modernization solutions. In addition, the company offers KONE Office Flow, a connected solution that allows for personalized user experiences and touch-free access; health and well-being solutions for elevators, escalators, and doors; KONE Access, an access control system, which is integrated with elevator system and building doors; KONE Destination, a destination control system that reduce waiting and travel times; KONE infotainment, a communication channel for building tenants and visitors; and monitoring solutions that enable real-time inspection of elevators and escalators. Further, it provides people flow planning and consulting services; solutions for special buildings and large projects; cybersecurity solutions; and energy solutions for greener buildings. KONE Oyj was founded in 1908 and is based in Espoo, Finland.