Generac and Dover: A Comprehensive Business Comparison

Generac Holdings Inc. and Dover Corporation, both listed on the New York Stock Exchange as NYSE:GNRC and NYSE:DOV respectively, are prominent players in the industrial sector. A recent analysis compares the two companies across various critical metrics, including earnings strength, valuation, profitability, analyst recommendations, and institutional ownership.

Ownership and Institutional Interest

A significant aspect of any company’s stability and growth potential is the level of institutional ownership. Currently, 84.0% of Generac’s shares are held by institutional investors, closely trailing Dover, which has 84.5% of its shares in the hands of similar entities. Additionally, insider ownership reveals that 2.7% of Generac’s shares are owned by company insiders, compared to 1.3% for Dover. Such robust institutional ownership typically indicates confidence among large investors regarding long-term growth prospects.

Profitability and Financial Performance

Profitability is another crucial factor in determining the strength of a business. An examination of key financial metrics shows that while Dover outperforms Generac in terms of revenue and earnings, Generac offers a higher potential upside according to market analysts. Generac currently has a consensus price target of $191.06, suggesting a potential increase of 23.07%. In contrast, Dover’s consensus price target stands at $211.55, with a lower potential upside of 16.73%. This indicates a more favorable outlook for Generac among analysts.

Valuation Insights

When it comes to valuation, Dover appears to be the more affordable option. It is trading at a lower price-to-earnings ratio than Generac, which suggests that investors may find better value in Dover’s stock at present. This aspect may attract investors looking for companies with strong fundamentals at a reasonable price.

Company Profiles

Generac Holdings Inc., founded in 1959 and headquartered in Waukesha, Wisconsin, specializes in energy technology products. The company’s offerings include residential automatic standby generators, smart home solutions, and various outdoor power equipment. Its diverse range of products is distributed through a wide network that includes independent residential dealers and national retailers.

Dover Corporation, established in 1947 and based in Downers Grove, Illinois, provides a broad spectrum of equipment and services across multiple sectors. Its Engineered Products segment includes essential components for vehicle aftermarkets and industrial automation, while the Clean Energy & Fueling segment focuses on safe storage and transport solutions for fuels and hazardous fluids. Dover’s operations span various industries, making it a significant player in both manufacturing and digital solutions.

In summary, while Dover surpasses Generac in revenue and profitability metrics, Generac’s higher potential upside might appeal to investors seeking growth. As the industrial sector evolves, both companies will likely continue to attract interest from institutional investors and analysts alike. The comparative analysis reveals that Dover outperforms Generac in eight of the fourteen factors evaluated, solidifying its position as a strong competitor in the market.