Babcock (BW) vs Power Solutions International, Inc. (PSIX)

Babcock and Power Solutions International, Inc. are both Specialty Industrial Machinery companies. Power Solutions International, Inc. is the larger, with a market value of $1.1B against $931.0M — 1.1× the size. Babcock has negative trailing earnings, so its P/E is not meaningful; Power Solutions International, Inc. trades at 15.8×. Babcock grew revenue faster over the last twelve months: 50.9% against 13.2%. Power Solutions International, Inc. has the higher net margin (10.0% vs −3.98%) and the lower return on invested capital (27.4% vs 134.7%). Across the 20 metrics below, Power Solutions International, Inc. leads on 13 and Babcock on 7.

Valuation

Metric BW PSIX Specialty Industrial Machinery median
P/E n/m 15.81 29.62
P/S 1.07 1.59 2.77
P/B 15.58 5.30 3.04
Price to free cash flow 5.64 16.03 23.81
EV/EBITDA 21.34 11.33 16.05
EV/Sales 1.02 1.59 2.94
Earnings yield (2.87%) 6.32% 3.08%
Free cash flow yield 17.72% 6.24% 3.12%

Profitability

Metric BW PSIX Specialty Industrial Machinery median
Gross margin 19.74% 23.86% 35.90%
Operating margin 3.08% 13.00% 11.22%
Net margin (3.98%) 10.03% 7.80%
Free cash flow margin 18.95% 9.92% 9.51%
Return on equity 26.41% 40.07% 11.10%
Return on assets (3.90%) 15.23% 4.63%
Return on invested capital 134.68% 27.40% 5.37%

Growth

Metric BW PSIX Specialty Industrial Machinery median
Revenue growth (TTM) 50.93% 13.17% 6.45%
EPS growth (last fiscal year) 41.46% 64.12% —
Revenue growth, 5-year CAGR 0.74% 11.58% 8.31%
Net income growth, 5-year CAGR 0.00% 0.00% 5.04%

Health

Metric BW PSIX Specialty Industrial Machinery median
Debt to equity 5.28 0.35 0.35
Current ratio 1.45 2.57 2.11
Net debt to EBITDA 2.60 0.44 1.32

Dividend

Metric BW PSIX Specialty Industrial Machinery median
Dividend yield — — 1.12%
Payout ratio 0.00 — 0.17

Size

Metric BW PSIX Specialty Industrial Machinery median
Market cap 931.03m 1.07b 1.97b

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