Head to Head Analysis: Brunswick (NYSE:BC) and Power Solutions International (NASDAQ:PSIX)

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

Volatility and Risk

Power Solutions International has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Brunswick has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500.

Institutional and Insider Ownership

22.3% of Power Solutions International shares are held by institutional investors. Comparatively, 99.3% of Brunswick shares are held by institutional investors. 0.6% of Power Solutions International shares are held by company insiders. Comparatively, 0.8% of Brunswick shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Power Solutions International	$458.97 million	2.08	$26.31 million	$2.36	17.58
Brunswick	$5.24 billion	0.83	$130.10 million	$1.90	34.56

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

Analyst Ratings

This is a breakdown of current recommendations for Power Solutions International and Brunswick, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Power Solutions International	0	0	0	0	0.00
Brunswick	0	6	7	0	2.54

Brunswick has a consensus price target of $81.85, indicating a potential upside of 24.65%. Given Brunswick’s stronger consensus rating and higher probable upside, analysts clearly believe Brunswick is more favorable than Power Solutions International.

Profitability

This table compares Power Solutions International and Brunswick’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%
Brunswick	2.48%	15.41%	5.00%

Summary

Brunswick beats Power Solutions International on 9 of the 14 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 Brunswick

Brunswick Corporation designs, manufactures, and markets recreation products in the United States, Europe, the Asia-Pacific, Canada, and internationally. It operates through four segments: Propulsion, Engine P&A, Navico Group, and Boat. The Propulsion segment provides outboard, sterndrive, inboard engines, propulsion-related controls, rigging, and propellers for boat builders through marine retail dealers under the Mercury, Mercury MerCruiser, Mariner, Mercury Racing, Mercury Diesel, Avator, and Fliteboard brands. The Engine P&A segment offers engine parts and consumables, electrical products, boat parts and systems, and engine oils and lubricants through aftermarket retailers, dealers, distributors, and original equipment manufacturers for marine and non-marine markets under the Mercury, Mercury Precision Parts, Quicksilver, and Seachoice brands; and distributes marine parts and accessories. The Navico Group segment provides products and systems for the marine, recreational vehicle (RV), specialty vehicle, mobile, and industrial markets, as well as aftermarket channels; and marine electronics, sensors, control systems, instruments, power systems, and general accessories under the Ancor, Attwood, B&G, BEP, Blue Sea Systems, C-MAP, CZone, Lenco, Lowrance, Marinco, Mastervolt, MotorGuide, Progressive Industries, ProMariner, RELiON, Simrad, and Whale brand names. The Boat segment offers Sea Ray sport boats and cruisers; Bayliner sport cruisers, runabouts, and Heyday wake boats; Boston Whaler fiberglass offshore boats; Lund fiberglass fishing boats; Crestliner, Harris, Lowe, Lund, Princecraft aluminum fishing, utility, pontoon, and deck boats; Thunder Jet heavy-gauge aluminum boats; Veer recreational and fishing boats; and the freedom boat club, dealer services, and technology to the marine industry through dealers and distributors. Brunswick Corporation was founded in 1845 and is headquartered in Mettawa, Illinois.