Financial Analysis: Energous (NASDAQ:WATT) versus Pioneer Power Solutions (NASDAQ:PPSI)

Pioneer Power Solutions (NASDAQ:PPSI) and Energous (NASDAQ:WATT) are both small-cap industrials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Earnings and Valuation

This table compares Pioneer Power Solutions and Energous”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pioneer Power Solutions	$22.88 million	1.63	$31.85 million	($0.46)	-7.30
Energous	$770,000.00	35.70	-$18.40 million	($18.13)	-0.70

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

Institutional and Insider Ownership

10.9% of Pioneer Power Solutions shares are owned by institutional investors. Comparatively, 4.4% of Energous shares are owned by institutional investors. 26.6% of Pioneer Power Solutions shares are owned by company insiders. Comparatively, 0.1% of Energous shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pioneer Power Solutions	99.80%	-12.91%	-9.08%
Energous	-1.27%	-143.13%	-93.47%

Analyst Ratings

This is a summary of current recommendations for Pioneer Power Solutions and Energous, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pioneer Power Solutions	0	1	2	0	2.67
Energous	1	0	0	0	1.00

Pioneer Power Solutions presently has a consensus target price of $9.50, suggesting a potential upside of 182.74%. Given Pioneer Power Solutions’ stronger consensus rating and higher possible upside, research analysts clearly believe Pioneer Power Solutions is more favorable than Energous.

Volatility and Risk

Pioneer Power Solutions has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, Energous has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Summary

Pioneer Power Solutions beats Energous on 12 of the 14 factors compared between the two stocks.

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 Energous

Energous Corporation provides wireless charging system solutions in the United States. The company develops WattUp wireless power networks technology that consists of semiconductor chipsets; software controls; hardware designs; and antennas that enables radio frequency-based charging for Internet of Things devices. Its products are used in asset trackers; sensors; retail displays; and security devices; smart home; medical; industrial; and other sensors; electronic shelf labeling; logistics and asset tracking tags and sensors; computer mice and keyboards; remote controls; gaming consoles and controllers; hearing aids; rechargeable batteries; automotive accessories; smart textiles; wearables; and medical devices. The company was formerly known as DvineWave Inc. and changed its name to Energous Corporation in January 2014. Energous Corporation was incorporated in 2012 and is headquartered in San Jose; California.