Ideal Power (NASDAQ: IPWR) and Hanwha Q CELLS Co. (NASDAQ:HQCL) are both small-cap industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.
Analyst Ratings
This is a summary of current ratings and target prices for Ideal Power and Hanwha Q CELLS Co., as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ideal Power | 0 | 1 | 3 | 0 | 2.75 |
| Hanwha Q CELLS Co. | 0 | 1 | 0 | 0 | 2.00 |
Ideal Power presently has a consensus price target of $5.00, indicating a potential upside of 124.22%. Hanwha Q CELLS Co. has a consensus price target of $7.00, indicating a potential downside of 4.76%. Given Ideal Power’s stronger consensus rating and higher probable upside, research analysts clearly believe Ideal Power is more favorable than Hanwha Q CELLS Co..
Valuation & Earnings
This table compares Ideal Power and Hanwha Q CELLS Co.’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Ideal Power | $1.41 million | 22.14 | -$10.85 million | ($1.11) | -2.01 |
| Hanwha Q CELLS Co. | N/A | N/A | N/A | $0.62 | 11.85 |
Hanwha Q CELLS Co. has higher revenue, but lower earnings than Ideal Power. Ideal Power is trading at a lower price-to-earnings ratio than Hanwha Q CELLS Co., indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
27.0% of Ideal Power shares are owned by institutional investors. Comparatively, 1.3% of Hanwha Q CELLS Co. shares are owned by institutional investors. 10.0% of Ideal Power shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility and Risk
Ideal Power has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500. Comparatively, Hanwha Q CELLS Co. has a beta of 2, suggesting that its stock price is 100% more volatile than the S&P 500.
Profitability
This table compares Ideal Power and Hanwha Q CELLS Co.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ideal Power | -895.37% | -102.50% | -88.85% |
| Hanwha Q CELLS Co. | 2.30% | 11.80% | 2.22% |
Summary
Ideal Power beats Hanwha Q CELLS Co. on 6 of the 11 factors compared between the two stocks.
Ideal Power Company Profile
Ideal Power Inc. (Ideal Power) designs, markets and sells electrical power conversion products using its Power Packet Switching Architecture (PPSA) technology. The Company’s PPSA is a power conversion technology that utilizes standardized hardware with application specific embedded software. It sells products to systems integrators for integration into their system, which enable end users to manage their electricity consumption by reducing demand charges or fossil fuel consumption, integrating renewable energy sources and form their own microgrid. It focuses on licensing PPSA-based product designs to original equipment manufacturers (OEMs) within its target markets. Its products use multiple insulated gate bipolar transistors (IGBTs), which switch power in a direction, including direct current (DC) to alternating current (AC), or AC to DC. The PPSA uses indirect power flow in which power flows through input switches, and is temporarily stored in its AC link inductor.
Hanwha Q CELLS Co. Company Profile
Hanwha Q CELLS Co., Ltd., formerly Hanwha SolarOne Co., Ltd., is a global solar energy company engaged in the manufacturing of solar modules, and the development and management of downstream solar farms. It manufactures a range of photo voltaic (PV) cells and PV modules at its manufacturing facilities in China and Malaysia using manufacturing process technologies, including those developed at its research and development facilities in Germany. It also engages in PV downstream businesses, which include developing solar power projects and providing engineering, procurement and construction services, and operation and management services. It develops and builds solar power projects incorporating its PV modules to sells them to third-party purchasers upon completion. Its principal products include PV modules, PV cells, silicon ingots and silicon wafers. It sells a range of PV modules, ranging from 250 watts to 340 watts in power output specification.
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