Financial Survey: American Electric Technologies (AETI) & Ideal Power (IPWR)

American Electric Technologies (NASDAQ:AETI) and Ideal Power (NASDAQ:IPWR) are both small-cap industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Insider and Institutional Ownership

31.2% of American Electric Technologies shares are held by institutional investors. Comparatively, 11.0% of Ideal Power shares are held by institutional investors. 31.4% of American Electric Technologies shares are held by insiders. Comparatively, 7.6% of Ideal Power shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for American Electric Technologies and Ideal Power, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Electric Technologies 0 0 0 0 N/A
Ideal Power 0 5 1 0 2.17

Ideal Power has a consensus target price of $1.67, suggesting a potential upside of 517.28%. Given Ideal Power’s higher probable upside, analysts clearly believe Ideal Power is more favorable than American Electric Technologies.

Valuation & Earnings

This table compares American Electric Technologies and Ideal Power’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Electric Technologies $47.13 million 0.22 -$2.22 million N/A N/A
Ideal Power $1.21 million 3.12 -$10.43 million ($0.78) -0.35

American Electric Technologies has higher revenue and earnings than Ideal Power.

Profitability

This table compares American Electric Technologies and Ideal Power’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Electric Technologies 4.15% -53.93% -14.07%
Ideal Power -568.42% -87.21% -71.13%

Volatility and Risk

American Electric Technologies has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, Ideal Power has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

Summary

American Electric Technologies beats Ideal Power on 7 of the 11 factors compared between the two stocks.

American Electric Technologies Company Profile

American Electric Technologies, Inc. supplies power delivery solutions in the United States and internationally. It provides power distribution, power conversion, and automation and control systems that distribute and control the flow of electricity from the source to the mechanical device. The company's power distribution products include low and medium voltage switchgears, medium voltage arc-resistant switchgears, low and medium voltage motor control centers, bus ducts, fuse and switch products, and other related power distribution equipment; and power conversion solutions comprise alternating current variable frequency drive systems, analog systems, and digital silicon controlled rectifier (SCR) products. It also provides automation and control solutions for the management and control of power in a customer's application; power distribution centers that are used to house power distribution and conversion products; variable frequency drive and SCR houses for land drilling; and driller's cabins for land and offshore deployment. In addition, the company offers electrical power infrastructure commissioning and maintenance services; electrical and instrumentation construction, and installation services, including electrical and instrumentation turnarounds, maintenance, renovation, and new construction projects; and low and medium voltage start-up/commissioning, preventative maintenance, emergency call out, and breaker and switchgear refurbishment services. It serves the oil and gas, power generation and distribution, and marine and industrial markets. The company was founded in 1946 and is headquartered in Houston, Texas.

Ideal Power Company Profile

Ideal Power Inc. develops power conversion solutions with a focus on solar and storage, microgrid, and stand-alone energy storage applications. It operates through two Divisions, Power Conversion Systems and B-TRAN. The Power Conversion Systems Division focuses on its Power Packet Switching Architecture technology. The B-TRAN Division develops its Bi-directional bi-polar junction TRANsistor solid state switch technology. The company's principal products include 30-kilowatt(kW) power conversion systems, such as two-port and multi-port products. It also offers 30kW SunDial, a PV string inverter, which is field upgradable through the addition of a drop-in second DC port to connect batteries to a solar PV array; and The SunDial Plus, such as the PV inverter and the second DC battery port. The company sells its products primarily to systems integrators in the United States. 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 founded in 2007 and is headquartered in Austin, Texas.

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