Gencor Industries (NASDAQ:GENC – Get Free Report) and Snap-On (NYSE:SNA – Get Free Report) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
84.9% of Snap-On shares are owned by institutional investors. 30.4% of Gencor Industries shares are owned by insiders. Comparatively, 3.8% of Snap-On 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
Gencor Industries has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, Snap-On has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gencor Industries | $110.01 million | 2.41 | $14.67 million | $1.16 | 15.59 |
| Snap-On | $4.74 billion | 3.92 | $1.02 billion | $19.61 | 18.31 |
Snap-On has higher revenue and earnings than Gencor Industries. Gencor Industries is trading at a lower price-to-earnings ratio than Snap-On, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Gencor Industries and Snap-On’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gencor Industries | 14.33% | 8.60% | 8.01% |
| Snap-On | 21.25% | 17.07% | 12.00% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for Gencor Industries and Snap-On, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gencor Industries | 0 | 1 | 1 | 1 | 3.00 |
| Snap-On | 0 | 1 | 5 | 0 | 2.83 |
Gencor Industries presently has a consensus price target of $19.30, indicating a potential upside of 6.75%. Snap-On has a consensus price target of $429.20, indicating a potential upside of 19.55%. Given Snap-On’s higher possible upside, analysts clearly believe Snap-On is more favorable than Gencor Industries.
Summary
Snap-On beats Gencor Industries on 12 of the 15 factors compared between the two stocks.
About Gencor Industries
Gencor Industries, Inc., together with its subsidiaries, designs, manufactures, and sells heavy machinery used in the production of highway construction materials and environmental control equipment. It offers hot-mix asphalt plants to produce asphalt paving materials; related asphalt plant equipment, including hot-mix storage silos, fabric filtration systems, cold feed bins, and other plant components; and a range of mobile batch plants. The company also provides combustion systems that transform solid, liquid, or gaseous fuels into usable energy, or burn multiple fuels in asphalt and aggregate drying industries; and combustion systems for rotary dryers, kilns, fume and liquid incinerators, and fuel heaters, as well as industrial incinerators. In addition, it offers thermal fluid heat transfer systems that transfer heat for storage, heating, and pumping viscous materials, such as asphalt, chemicals, heavy oils, etc. in various industrial and petrochemical applications; specialty storage tanks for various industrial uses; and asphalt pavers under the Blaw-Knox brand. The company sells its products primarily to the highway construction industry through its sales representatives, and independent dealers and agents worldwide. The company was formerly known as Mechtron International Corporation and changed its name to Gencor Industries, Inc. in 1987. Gencor Industries, Inc. was founded in 1894 and is based in Orlando, Florida.
About Snap-On
Snap-on Incorporated manufactures and markets tools, equipment, diagnostics, and repair information and systems solutions for professional users worldwide. It operates through Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services segments. The company provides hand tools, including wrenches, sockets, ratchet wrenches, pliers, screwdrivers, punches and chisels, saws and cutting tools, pruning tools, torque measuring instruments, and other related products; power tools, such as cordless, pneumatic, and hydraulic and corded tools; and tool storage products comprising tool chests, roll cabinets, and other products. It provides handheld and computer-based diagnostic products, service and repair information products, diagnostic software solutions, electronic parts catalogs, business management systems and services, point-of-sale systems, integrated systems for vehicle service shops, original equipment manufacturer purchasing facilitation services, and warranty management systems and analytics; and engineered solutions. In addition, the company offers solutions for the service of vehicles and industrial equipment that include wheel alignment equipment, wheel balancers, tire changers, vehicle lifts, test lane equipment, collision repair equipment, vehicle air conditioning service equipment, brake service equipment, fluid exchange equipment, transmission troubleshooting equipment, safety testing equipment, battery chargers, and hoists, as well as after-sales support services and training programs. Further, it provides financing programs to facilitate the sales of its products and support its franchise business. It serves the aviation and aerospace, agriculture, infrastructure construction, government and military, mining, natural resources, power generation, and technical education industries. Snap-on Incorporated was incorporated in 1920 and is headquartered in Kenosha, Wisconsin.
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