Gencor Industries (NASDAQ:GENC – Get Rating) and CNH Industrial (NYSE:CNHI – Get Rating) are both industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.
Institutional & Insider Ownership
40.4% of Gencor Industries shares are held by institutional investors. Comparatively, 38.4% of CNH Industrial shares are held by institutional investors. 28.9% of Gencor Industries shares are held 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.
Profitability
This table compares Gencor Industries and CNH Industrial’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Gencor Industries | 3.09% | 2.01% | 1.84% |
CNH Industrial | 8.62% | 31.61% | 5.40% |
Volatility and Risk
Analyst Recommendations
This is a breakdown of current ratings for Gencor Industries and CNH Industrial, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Gencor Industries | 0 | 0 | 0 | 0 | N/A |
CNH Industrial | 0 | 4 | 8 | 0 | 2.67 |
CNH Industrial has a consensus target price of $19.51, indicating a potential upside of 35.40%. Given CNH Industrial’s higher possible upside, analysts clearly believe CNH Industrial is more favorable than Gencor Industries.
Earnings and Valuation
This table compares Gencor Industries and CNH Industrial’s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Gencor Industries | $109.20 million | 2.05 | -$370,000.00 | $0.23 | 66.52 |
CNH Industrial | $23.55 billion | 0.82 | $2.03 billion | $1.48 | 9.74 |
CNH Industrial has higher revenue and earnings than Gencor Industries. CNH Industrial is trading at a lower price-to-earnings ratio than Gencor Industries, indicating that it is currently the more affordable of the two stocks.
Summary
CNH Industrial beats Gencor Industries on 9 of the 13 factors compared between the two stocks.
About Gencor Industries
Gencor Industries, Inc. engages in the designing, manufacturing and sales of heavy machinery and related equipment used in the production of highway construction materials, synthetic fuels and environmental control equipment. Its products include asphalt plants, combustion systems and industrial incinerators, fluid heat transfer systems and asphalt pavers. The company was founded by Emanuel J. Elliott in 1968 and is headquartered in Orlando, FL.
About CNH Industrial
CNH Industrial NV designs, produces and sells agricultural equipment and commercial vehicles. It operates through the following business segments: Heavy construction equipment and Light construction equipment. The Heavy construction equipment segment includes general construction equipment such as large wheel loaders and excavators, and road building and site preparation equipment such as graders, compactors and dozers. Purchasers of heavy construction equipment include construction companies, municipalities, local governments, rental fleet owners, quarrying and mining companies, waste management companies and forestry-related concerns. The Light construction equipment is also know as compact and service equipment, and it includes skid-steer loaders, compact track loaders, tractor loaders, rough terrain forklifts, backhoe loaders, small wheel loaders and excavators. Purchasers of light construction equipment include contractors, residential builders, utilities, road construction companies, rental fleet owners, landscapers, logistics companies and farmers. The company was founded in 1866 and is headquartered in London, the United Kingdom.
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