Kone Oyj (OTCMKTS:KNYJY) and Ideal Power (NASDAQ:IPWR) Financial Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kone Oyj	8.48%	38.70%	10.75%
Ideal Power	-26,225.58%	-80.27%	-69.83%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Kone Oyj and Ideal Power, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kone Oyj	1	1	0	1	2.33
Ideal Power	1	0	1	0	2.00

Ideal Power has a consensus target price of $10.75, indicating a potential upside of 148.27%. Given Ideal Power’s higher probable upside, analysts clearly believe Ideal Power is more favorable than Kone Oyj.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kone Oyj	$12.01 billion	2.59	$1.03 billion	$1.02	33.70
Ideal Power	$90,000.00	409.43	-$10.42 million	($1.24)	-3.49

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

Volatility & Risk

Kone Oyj has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Ideal Power has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500.

Insider & Institutional Ownership

16.4% of Ideal Power shares are owned by institutional investors. 5.4% of Ideal Power shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Kone Oyj beats Ideal Power on 9 of the 15 factors compared between the two stocks.

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.

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.