Principal Solar (OTCMKTS:PSWW) and Otter Tail (NASDAQ:OTTR) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.
Risk and Volatility
Principal Solar has a beta of 7.64, meaning that its share price is 664% more volatile than the S&P 500. Comparatively, Otter Tail has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500.
46.2% of Otter Tail shares are owned by institutional investors. 39.2% of Principal Solar shares are owned by insiders. Comparatively, 1.8% of Otter Tail shares are owned by 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.
This table compares Principal Solar and Otter Tail’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Principal Solar and Otter Tail’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Otter Tail||$890.11 million||2.55||$95.85 million||$2.34||23.36|
Otter Tail has higher revenue and earnings than Principal Solar.
This is a summary of recent ratings and target prices for Principal Solar and Otter Tail, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Otter Tail has a consensus price target of $67.00, indicating a potential upside of 22.55%. Given Otter Tail’s higher probable upside, analysts clearly believe Otter Tail is more favorable than Principal Solar.
Otter Tail beats Principal Solar on 7 of the 9 factors compared between the two stocks.
Principal Solar Company Profile
Principal Solar, Inc. engages in the investment and acquisition of organizations and technologies that support next-generation opportunities in the traditional, renewable, and clean energy sectors. It also focuses on undervalued petroleum-producing properties. The company was founded on February 25, 1972 and is headquartered in Dallas, TX.
Otter Tail Company Profile
Otter Tail Corp. is a holding company, which engages in the energy, infrastructure, and production businesses. It operates through the following segments: Electric, Manufacturing and Plastics. The Electric segment generates, transmits, and distributes power and electric energy. The Manufacturing segment offers contract machining, metal parts stamping, fabrication, handling trays, and horticultural containers. The Plastics segment produces polyvinyl chloride pipes. The company was founded in 1907 and is headquartered in Fergus Falls, MN.
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