Sensata Technologies (NYSE:ST) & Powell Industries (NASDAQ:POWL) Critical Comparison

Powell Industries (NASDAQ:POWL) and Sensata Technologies (NYSE:ST) are both mid-cap industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Powell Industries and Sensata Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Powell Industries	0	3	2	2	2.86
Sensata Technologies	1	4	5	0	2.40

Powell Industries currently has a consensus price target of $187.92, indicating a potential upside of 14.24%. Sensata Technologies has a consensus price target of $50.33, indicating a potential upside of 20.08%. Given Sensata Technologies’ higher possible upside, analysts plainly believe Sensata Technologies is more favorable than Powell Industries.

Institutional and Insider Ownership

89.8% of Powell Industries shares are owned by institutional investors. Comparatively, 99.4% of Sensata Technologies shares are owned by institutional investors. 2.2% of Powell Industries shares are owned by insiders. Comparatively, 0.7% of Sensata Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Powell Industries and Sensata Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Powell Industries	16.49%	27.51%	15.94%
Sensata Technologies	9.52%	19.38%	8.43%

Volatility and Risk

Powell Industries has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Sensata Technologies has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.

Earnings & Valuation

This table compares Powell Industries and Sensata Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Powell Industries	$1.16 billion	5.18	$180.75 million	$5.21	31.57
Sensata Technologies	$3.85 billion	1.59	$31.30 million	$2.50	16.77

Powell Industries has higher earnings, but lower revenue than Sensata Technologies. Sensata Technologies is trading at a lower price-to-earnings ratio than Powell Industries, indicating that it is currently the more affordable of the two stocks.

Dividends

Powell Industries pays an annual dividend of $0.36 per share and has a dividend yield of 0.2%. Sensata Technologies pays an annual dividend of $0.48 per share and has a dividend yield of 1.1%. Powell Industries pays out 6.9% of its earnings in the form of a dividend. Sensata Technologies pays out 19.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Powell Industries has increased its dividend for 3 consecutive years.

Summary

Powell Industries beats Sensata Technologies on 12 of the 18 factors compared between the two stocks.

About Powell Industries

Powell Industries, Inc., together with its subsidiaries, designs, develops, manufactures, sells, and services custom-engineered equipment and systems. The company’s principal products include integrated power control room substations, custom-engineered modules, electrical houses, medium-voltage circuit breakers, monitoring and control communications systems, motor control centers, switches, and bus duct systems, as well as traditional and arc-resistant distribution switchgears and control gears. Its products have application in voltages ranging from 480 volts to 38,000 volts. The company also provide field service inspection, installation, commissioning, modification and repair, spare parts, retrofit and retrofill components for existing systems, and replacement circuit breakers for switchgear. It serves onshore and offshore production, liquefied natural gas facilities and terminals, pipelines, refineries, and petrochemical plants, as well as electric utility, light rail traction power, mining and metals, pulp and paper, data centers and other municipal, commercial, and industrial markets. The company has operations in the United States, Canada, the Middle East, Africa, Europe, Mexico, and Central and South America. Powell Industries, Inc. was founded in 1947 and is headquartered in Houston, Texas.

About Sensata Technologies

Sensata Technologies Holding plc develops, manufactures, and sells sensors and sensor-rich solutions, electrical protection components and systems, and other products used in mission-critical systems and applications in the United States and internationally. It operates in two segments, Performance Sensing and Sensing Solutions. The Performance Sensing segment offers pressure, temperature, and position sensors, high-voltage solutions, and other solutions used in mission-critical systems and applications, such as tire pressure monitoring, thermal management, electrical protection, regenerative braking, powertrain for engine/transmission, and exhaust management for automobiles, on-road trucks, and off-road equipment customers. The Sensing Solutions segment provides application-specific sensor and electrical protection products, such as pressure, temperature, and position sensors; motor and compressor protectors; high-voltage contactors; solid state relays; bimetal electromechanical controls; power inverters; charge controllers; battery management systems; operator controls; and power conversion systems. It serves automotive, on-road truck, construction, and original equipment manufacturers in agriculture, control, appliance, medical, energy and charging infrastructure, data/telecom, and aerospace and defense industries, as well as systems integrators, aerospace, and motor and compressor distributors. Sensata Technologies Holding plc was founded in 1916 and is headquartered in Attleboro, Massachusetts.