Generac (NYSE:GNRC – Get Free Report) and Rockwell Automation (NYSE:ROK – Get Free Report) are both large-cap industrials companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.
Profitability
This table compares Generac and Rockwell Automation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Generac | 5.82% | 17.83% | 8.58% |
| Rockwell Automation | 13.39% | 39.83% | 12.97% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Generac and Rockwell Automation, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Generac | 0 | 5 | 12 | 2 | 2.84 |
| Rockwell Automation | 0 | 12 | 9 | 0 | 2.43 |
Earnings and Valuation
This table compares Generac and Rockwell Automation”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Generac | $4.21 billion | 2.78 | $159.55 million | $4.34 | 45.74 |
| Rockwell Automation | $8.34 billion | 5.76 | $869.00 million | $10.67 | 40.52 |
Rockwell Automation has higher revenue and earnings than Generac. Rockwell Automation is trading at a lower price-to-earnings ratio than Generac, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Generac has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500. Comparatively, Rockwell Automation has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500.
Insider and Institutional Ownership
84.0% of Generac shares are owned by institutional investors. Comparatively, 75.7% of Rockwell Automation shares are owned by institutional investors. 2.4% of Generac shares are owned by company insiders. Comparatively, 0.8% of Rockwell Automation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Generac beats Rockwell Automation on 8 of the 15 factors compared between the two stocks.
About Generac
Generac Holdings Inc. designs, manufactures, and distributes various energy technology products and solution worldwide. The company offers residential automatic standby generators, automatic transfer switch, air-cooled engine residential standby generators, and liquid-cooled engine generators; Mobile Link, a remote monitoring system for home standby generators; residential storage solution, which consists of a system of batteries, an inverter, photovoltaic optimizers, power electronic controls, and other components; smart home solutions, such as smart thermostats and a suite of home monitoring products. It also provides smart home energy management devices and sensors for heating and cooling system; smart doorbell cameras; and portable and inverter generators; multiple portable battery solutions; manual transfer switches; outdoor power equipment, including trimmers, field and brush mowers, log splitters, stump grinders, chipper shredders, lawn and leaf vacuums, and pressure washers and water pumps; and battery-powered turf care products. In addition, the company offers commercial and industrial products comprising cleaner-burning natural gas fueled generators; light-commercial standby generators and related transfer switches; stationary generators; single-engine industrial generators; industrial standby generators; industrial transfer switches; light towers, mobile generators, commercial mobile pumps, heaters, dust-suppression equipment, and mobile energy storage systems; stationary energy storage system and related inverter products; and aftermarket service parts and product accessories. The company distributes its products through independent residential dealers, industrial distributors and dealers, national and regional retailers, e-commerce partners, electrical/HVAC/solar wholesalers, solar installers, catalogs, equipment rental companies, and other equipment distributors; and directly to end users. The company was founded in 1959 and is headquartered in Waukesha, Wisconsin.
About Rockwell Automation
Rockwell Automation, Inc. provides industrial automation and digital transformation solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through three segments, Intelligent Devices, Software & Control, and Lifecycle Services. Its solutions include hardware and software products and services. The Intelligent Devices segment offers drives, motion, safety, sensing, industrial components, and configured-to-order products. The Software & Control segment provides control and visualization software and hardware, information software, and network and security infrastructure solutions. The Lifecycle Services segment provides consulting, professional services and solutions, and connected and maintenance services. The company sells its solutions primarily through independent distributors in relation with its direct sales force. It serves discrete end markets, including automotive, semiconductor, and warehousing and logistics, as well as general industries comprising printing and publishing, marine, glass, fiber and textiles, airports, and aerospace; hybrid end markets, such as food and beverage, life sciences, household and personal care, and tire, as well as eco industrial, including water/wastewater, waste management, mass transit, and renewable energy; and process end markets comprising oil and gas, mining, metals, chemicals, pulp and paper, and others. Rockwell Automation, Inc. was founded in 1903 and is headquartered in Milwaukee, Wisconsin.
Receive News & Ratings for Generac Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Generac and related companies with MarketBeat.com's FREE daily email newsletter.
