Capstone Turbine (CPST) vs. Coates International (COTE) Critical Analysis

Capstone Turbine (NASDAQ:CPST) and Coates International (OTCMKTS:COTE) are both small-cap industrial products companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Earnings & Valuation

This table compares Capstone Turbine and Coates International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Capstone Turbine $82.84 million 0.56 -$10.02 million ($0.20) -3.41
Coates International $10,000.00 18.31 -$8.38 million N/A N/A

Coates International has lower revenue, but higher earnings than Capstone Turbine.

Institutional & Insider Ownership

13.1% of Capstone Turbine shares are held by institutional investors. 1.6% of Capstone Turbine shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Capstone Turbine and Coates International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Capstone Turbine -13.21% -46.55% -19.46%
Coates International N/A N/A -246.71%

Analyst Recommendations

This is a summary of recent ratings and target prices for Capstone Turbine and Coates International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capstone Turbine 0 0 4 0 3.00
Coates International 0 0 0 0 N/A

Capstone Turbine presently has a consensus target price of $2.38, suggesting a potential upside of 248.04%. Given Capstone Turbine’s higher possible upside, analysts clearly believe Capstone Turbine is more favorable than Coates International.

Risk and Volatility

Capstone Turbine has a beta of -0.13, meaning that its share price is 113% less volatile than the S&P 500. Comparatively, Coates International has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Summary

Capstone Turbine beats Coates International on 6 of the 11 factors compared between the two stocks.

Capstone Turbine Company Profile

Capstone Turbine Corporation develops, manufactures, markets, and services microturbine technology solutions for use in stationary distributed power generation applications worldwide. It offers microturbine units, components, and various accessories for applications, including cogeneration comprising combined heat and power (CHP) and integrated CHP, as well as combined cooling, heat, and power; and renewable energy, natural resources, and critical power supply. The company's microturbines are also used as battery charging generators for hybrid electric vehicle applications. It also provides various accessories, including rotary gas compressors with digital controls; heat recovery modules for CHP applications; dual mode controllers that allow automatic transition between grid connect and stand-alone modes; batteries with digital controls for stand-alone or dual-mode operations; batteries with digital controls; power servers for multipacked installations; protocol converters for Internet access; packaging options; and miscellaneous parts, such as frames, exhaust ducting, backflow dampers, and installation hardware. In addition, the company remanufactures microturbine engines; and provides after-market parts and services. It markets and sells its products primarily through distributors and original equipment manufacturers. Capstone Turbine Corporation was founded in 1988 and is headquartered in Van Nuys, California.

Coates International Company Profile

Coates International, Ltd. develops and sells Coates Spherical Rotary Valve (CSRV) system technology for use in various piston-driven internal combustion engines in the United States and internationally. The company's CSRV system technology replaces the intake and exhausts conventional poppet valves used in various piston-driven stationary, automotive, motorcycle, and marine engines. Its CSRV system technology is used in various applications, including engines for electric power generators for home use, industrial complexes, and grid installations; and engines to power motorcycles, automobiles, light and heavy trucks, machinery, railroads, marine engines, military equipment, light aircraft, helicopters, lawn mowers, snowmobiles and jet skis, etc. Coates International, Ltd. was founded in 1988 and is headquartered in Wall Township, New Jersey.

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