Tennant (NYSE: TNC) and Generation Next Franchise Brands (OTCMKTS:VEND) are both small-cap industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Valuation and Earnings
This table compares Tennant and Generation Next Franchise Brands’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tennant||$1.00 billion||1.25||-$6.19 million||$1.54||45.71|
|Generation Next Franchise Brands||$4.27 million||24.49||-$11.26 million||N/A||N/A|
This is a summary of current ratings and target prices for Tennant and Generation Next Franchise Brands, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Generation Next Franchise Brands||0||0||1||0||3.00|
This table compares Tennant and Generation Next Franchise Brands’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Generation Next Franchise Brands||-861.36%||N/A||-72.26%|
Institutional and Insider Ownership
91.1% of Tennant shares are held by institutional investors. Comparatively, 0.1% of Generation Next Franchise Brands shares are held by institutional investors. 5.6% of Tennant shares are held by company insiders. Comparatively, 62.6% of Generation Next Franchise Brands shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
Tennant has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Generation Next Franchise Brands has a beta of -8.15, meaning that its stock price is 915% less volatile than the S&P 500.
Tennant pays an annual dividend of $0.84 per share and has a dividend yield of 1.2%. Generation Next Franchise Brands does not pay a dividend. Tennant pays out 54.5% of its earnings in the form of a dividend. Tennant has increased its dividend for 46 consecutive years.
Tennant beats Generation Next Franchise Brands on 9 of the 12 factors compared between the two stocks.
Tennant Company Profile
Tennant Company designs, manufactures, and markets floor cleaning equipment. It offers a suite of products, including floor maintenance and outdoor cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair services, specialty surface coatings, and asset management solutions. The company also provides business solutions, such as financing, rental, and leasing programs, as well as machine-to-machine asset management solutions. Its products are used in retail establishments and distribution centers; factories and warehouses; and public venues, such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, parking lots and streets, and other environments. The company markets its products to contract cleaners, businesses, and various governmental entities through direct sales and service organization, as well as through a network of authorized distributors under the Tennant, Nobles, Green Machines, Alfa Uma Empresa Tennant, IRIS, Superior Anodes, Waterstar, and Orbio brands worldwide. Tennant Company was founded in 1870 and is headquartered in Minneapolis, Minnesota.
Generation Next Franchise Brands Company Profile
Generation NEXT Franchise Brands, Inc. formerly Fresh Healthy Vending International, Inc., is a franchise development company and operator of Company-owned vending machines, micro markets and frozen yogurt robots. The Company provides a portfolio of fresh, organic and all-natural snacks and drinks. The micro market provides fresh full meal options, such as salads, sandwiches and wraps. The micro market is designed for implementation in corporate environments, hotel lobbies, auto dealerships and other retail environments. The Company is focused on setting up national distribution partners to carry the consumable products required for the frozen yogurt robots. It outsources non-core functions to third-party vendors. Its services include machine manufacturing, transport, location set-up, maintenance, inventory, food management and ordering, payment processing and cash management. As of June 30, 2016, the Company and its franchisees operated over 3,000 vending machines and micro markets.
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