Comparing ZJK Industrial (NASDAQ:ZJK) and Generac (NYSE:GNRC)

Generac (NYSE:GNRC) and ZJK Industrial (NASDAQ:ZJK) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.

Valuation and Earnings

This table compares Generac and ZJK Industrial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Generac	$4.35 billion	2.09	$325.26 million	$5.25	29.52
ZJK Industrial	$37.81 million	3.10	$3.68 million	N/A	N/A

Generac has higher revenue and earnings than ZJK Industrial.

Analyst Ratings

This is a summary of current ratings and recommmendations for Generac and ZJK Industrial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Generac	1	7	13	0	2.57
ZJK Industrial	1	0	0	0	1.00

Generac presently has a consensus price target of $191.06, suggesting a potential upside of 23.29%. Given Generac’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Generac is more favorable than ZJK Industrial.

Profitability

This table compares Generac and ZJK Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Generac	6.92%	17.63%	8.50%
ZJK Industrial	N/A	N/A	N/A

Insider and Institutional Ownership

84.0% of Generac shares are held by institutional investors. 2.7% of Generac shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Generac has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500. Comparatively, ZJK Industrial has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500.

Summary

Generac beats ZJK Industrial on 10 of the 12 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 ZJK Industrial

ZJK Industrial Co. Ltd. is a high-tech enterprise specialized in manufacturing and sale of precision fasteners, structural parts and other precision metal parts products applied in a variety of industries, including intelligent electronic equipment, new energy vehicles, aerospace, energy storage systems and liquid cooling systems used in artificial intelligence supercomputers. ZJK Industrial Co. Ltd. is based in Shenzhen, China.