Head to Head Analysis: Generac (NYSE:GNRC) and ALSTOM/ADR (NYSE:ALSMY)

Generac (NYSE:GNRC) and ALSTOM/ADR (OTCMKTS:ALSMY) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Profitability

This table compares Generac and ALSTOM/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Generac 11.39% 32.73% 12.13%
ALSTOM/ADR N/A N/A N/A

Analyst Ratings

This is a breakdown of current ratings and price targets for Generac and ALSTOM/ADR, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Generac 0 5 4 0 2.44
ALSTOM/ADR 0 5 2 0 2.29

Generac currently has a consensus target price of $116.88, indicating a potential downside of 0.74%. Given Generac’s stronger consensus rating and higher possible upside, research analysts plainly believe Generac is more favorable than ALSTOM/ADR.

Insider & Institutional Ownership

98.3% of Generac shares are owned by institutional investors. Comparatively, 0.1% of ALSTOM/ADR shares are owned by institutional investors. 2.9% of Generac shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Generac has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, ALSTOM/ADR has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.

Earnings and Valuation

This table compares Generac and ALSTOM/ADR’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Generac $2.20 billion 3.35 $252.01 million $5.06 23.27
ALSTOM/ADR $9.12 billion 1.13 $519.21 million $0.22 20.97

ALSTOM/ADR has higher revenue and earnings than Generac. ALSTOM/ADR is trading at a lower price-to-earnings ratio than Generac, indicating that it is currently the more affordable of the two stocks.

Summary

Generac beats ALSTOM/ADR on 12 of the 14 factors compared between the two stocks.

About Generac

Generac Holdings Inc. designs, manufactures, and sells power generation equipment and other power products for the residential, light commercial, and industrial markets worldwide. The company offers engines, alternators, transfer switches, and other components fueled by natural gas, liquid propane, gasoline, diesel, and bi-fuel. It also provides residential automatic standby generators ranging in output from 6kW to 60kW; air-cooled engine residential standby generators ranging from 6kW to 22kW; liquid-cooled engine generators with outputs ranging from 22kW to 60kW; remote monitoring system for home standby generators; and industrial diesel generators ranging in sizes up to 3,250kW. In addition, the company offers various portable generators ranging in size from 800W to 17.5kW; engine driven power washers; water pumps; and outdoor power equipment, such as trimmers and brush mowers, log splitters, lawn and leaf vacuums, and chipper shredders. Further, it provides light towers, mobile generators, and flameless heaters; light-commercial standby generators ranging from 22kW to 150kW and related transfer switches providing three-phase power for small and mid-sized businesses; and industrial generators ranging in output from 10kW up to 3,250kW as emergency backup for large healthcare, telecom, datacom, commercial office, municipal, and manufacturing markets. Additionally, the company sells aftermarket service parts and product accessories to dealers. It distributes its products through independent residential dealers, industrial distributors and dealers, national and regional retailers, e-commerce merchants, electrical and HVAC wholesalers, catalogs, and equipment rental companies and distributors; and directly to end users under the Powermate, DeWalt, DR, and Pramac brand names. Generac Holdings Inc. was founded in 1959 and is headquartered in Waukesha, Wisconsin.

About ALSTOM/ADR

Alstom SA develops and markets systems, equipment, and services for the transport sector in Europe, the Americas, Asia and Pacific, the Middle-East, and Africa. The company offers metros, tramways, tram-trains, suburban trains, regional trains, high-speed trains, and passengers and freight locomotives; and signaling products, such as rail control systems, security and control, trackside, and interlocking products. It is also involved in the design and installation solutions for track laying; the electrification of and power supply to lines; and supply and installation electromechanical equipment. In addition, the company provides urban and main-line rail systems to manage trains, signaling, infrastructure, and services; and maintenance, modernization, parts and repair, and support services. Further, it offers various components, including bogies, motors, traction systems, switchgears, auxiliary converters, traction transformers, feeding systems, and dampers. Alstom SA has a strategic partnership with Cosmotech to develop a new application to improve the efficiency of a rail system. Alstom SA was incorporated in 1992 and is headquartered in Saint-Ouen, France.

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