Head to Head Analysis: Aggreko (ARGKF) vs. American Superconductor (AMSC)

American Superconductor (NASDAQ: AMSC) and Aggreko (OTCMKTS:ARGKF) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Institutional and Insider Ownership

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25.4% of American Superconductor shares are owned by institutional investors. 2.6% of American Superconductor shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares American Superconductor and Aggreko’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Superconductor $75.19 million 1.76 -$27.37 million ($2.16) -2.93
Aggreko $2.05 billion 1.27 $169.41 million $0.84 12.11

Aggreko has higher revenue and earnings than American Superconductor. American Superconductor is trading at a lower price-to-earnings ratio than Aggreko, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares American Superconductor and Aggreko’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Superconductor -65.96% -60.92% -36.59%
Aggreko N/A N/A N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for American Superconductor and Aggreko, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Superconductor 0 2 5 0 2.71
Aggreko 0 0 1 0 3.00

American Superconductor presently has a consensus target price of $7.14, indicating a potential upside of 13.02%. Given American Superconductor’s higher possible upside, equities analysts plainly believe American Superconductor is more favorable than Aggreko.

Risk and Volatility

American Superconductor has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Aggreko has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500.

Summary

Aggreko beats American Superconductor on 8 of the 13 factors compared between the two stocks.

American Superconductor Company Profile

American Superconductor Corporation provides megawatt-scale solutions worldwide. The company operates through two segments, Wind and Grid. The Wind segment designs wind turbine systems and licenses these designs to third parties under the Windtec Solutions brand. It supplies power electronics and software-based control systems, and provides customer support services to wind turbine manufacturers. This segment's design portfolio comprises a range of drivetrains and power ratings of 2 megawatts. The Grid segment offers products and services that enable electric utilities and renewable energy project developers to connect, transmit, and distribute power under the Gridtec Solutions brand. It provides transmission planning services, which identify power grid congestion, poor power quality, and other risks; grid interconnection solutions for wind farms and solar power plants, power quality systems, and transmission and distribution cable systems; resilient electric grid systems, which provide protection against the adverse effects that follow the loss of critical substation facilities in urban areas; and ship protection systems, which reduce a naval ship's magnetic signature. This segment also offers flexible alternating current transmission system, a system that consists of power electronics and other static components used for controlling power flow and voltage in the AC transmission system; and standalone fault current limiters, which act as surge protectors for the power grid. American Superconductor Corporation was founded in 1987 and is headquartered in Devens, Massachusetts.

Aggreko Company Profile

Aggreko Plc supplies modular, mobile power, heating, cooling, and related services worldwide. The company operates in three segments: Rental Solutions, Power Solutions ? Industrial, and Power Solutions ? Utility. It offers power generation products, such as diesel generators, G3+ generators, and gas generators, as well as Solar-diesel hybrid power plants; cooling systems, including cooling towers, chillers, heat exchangers, air handlers, and air conditioners; and desiccant and refrigerated dehumidifiers to prevent metal corrosion, aid processes, preserve equipment on cold stacked offshore rigs, reduce mold and mildew growth during production processes, and dry out water-damaged buildings, as well as to reduce drying times for concrete, insulation, and fireproofing. The company also provides electric heaters, indirect fired heaters, and heat exchangers; and load banks that are used to test generators and turbines, uninterrupted power systems, electrical distribution panels and systems, data center power systems, combined heat and power systems, and simulation of heat loads. In addition, it offers power to government utilities. The company operates 193 sales and service centers. It serves various the agriculture, construction, contracting, data centers, events, facilities management, food and beverage, government services, manufacturing, mining, oil and gas, petrochemical and refining, pharmaceuticals, renewable energy, shipping, telecommunications, and utilities sectors. Aggreko Plc was founded in 1962 and is based in Glasgow, the United Kingdom.

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