Analyzing Ideal Power (NASDAQ:IPWR) and On Track Innovations (OTCMKTS:OTIVF)

Ideal Power (NASDAQ:IPWR) and On Track Innovations (OTCMKTS:OTIVF) are both small-cap industrial products companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Analyst Ratings

This is a summary of recent recommendations for Ideal Power and On Track Innovations, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ideal Power	0	0	1	0	3.00
On Track Innovations	0	0	0	0	N/A

Ideal Power currently has a consensus target price of $14.00, suggesting a potential upside of 95.53%.

Profitability

This table compares Ideal Power and On Track Innovations’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ideal Power	-7,138.19%	-62.80%	-55.62%
On Track Innovations	-63.06%	-1,110.80%	-62.59%

Volatility & Risk

Ideal Power has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, On Track Innovations has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Valuation & Earnings

This table compares Ideal Power and On Track Innovations’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ideal Power	$143,110.00	384.44	-$9.95 million	($1.59)	-4.50
On Track Innovations	$14.88 million	0.00	-$11.66 million	N/A	N/A

Ideal Power has higher earnings, but lower revenue than On Track Innovations.

Insider and Institutional Ownership

16.4% of Ideal Power shares are owned by institutional investors. Comparatively, 33.6% of On Track Innovations shares are owned by institutional investors. 5.0% of Ideal Power shares are owned by insiders. Comparatively, 8.0% of On Track Innovations shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Ideal Power beats On Track Innovations on 5 of the 9 factors compared between the two stocks.

About Ideal Power

Ideal Power Inc. focuses on the development and commercialization of its bidirectional bipolar junction TRANsistor solid-state switch technology. It also offers SymCool Power Module designed to meet low conduction loss needs of the solid-state circuit breaker market. The company serves electric and hybrid electric vehicles, electric vehicle charging, renewable energy and energy storage system power converters, uninterruptible power supplies for data centers, industrial motor drives, solid-state circuit breakers, distribution and transmission switches and controls, and other industrial and military markets. 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 incorporated in 2007 and is headquartered in Austin, Texas.

About On Track Innovations

On Track Innovations Ltd., together with its subsidiaries, designs, develops, and markets cashless payment solutions worldwide. It operates in two segments, Retail and Petroleum. The company's product portfolio includes readers, controllers and terminals, management software, payment services, and Payment System as a Service (PSaaS). It offers OtiMetry System that incorporates telemetry, sales, and operations into solution with cloud control, and real-time online management and alerts; TRIO-IQ, a telemetry gateway and EMV payment reader; TRIO, a payment device for installation in kiosks and vending machines; UNO-8 and UNO-PLUS contactless readers for unattended retail environments with self-service payment stations, including ATMs, toll roads, access control, and mass transit validators; and controllers and gateways comprises OTI TeleBox, a machine-to-machine controller that enables the communication between machines, and GoBox, a machine-to-machine controller that communicates between machines, cashless readers, and remote servers. The company also provides a terminal management system, which is a cloud-based system that provides real-time control and insights of each machine enabling operators to remotely manage their terminal's fleet; and cloud based vending management system and vending BI. In addition, it offers payment services, including payment service API, an application programming interface; close loop payment that supports close-loop payment cards; and APIs for integration with mobile payment solutions, as well as original equipment manufacturer (OEM) payment solutions. The company's readers are certified by various card associations and support Apple Pay, Google Pay, Samsung Pay, MIFARE, FeliCa, and others. The company was formerly known as De-Bug Innovations Ltd. and changed its name to On Track Innovations Ltd. in July 1991. On Track Innovations Ltd. was incorporated in 1990 and is headquartered in Yokneam Illit, Israel.