Critical Comparison: Gencor Industries (GENC) vs. The Competition

Gencor Industries (NASDAQ:GENC) is one of 437 publicly-traded companies in the “Machinery” industry, but how does it compare to its rivals? We will compare Gencor Industries to related businesses based on the strength of its institutional ownership, risk, earnings, dividends, analyst recommendations, profitability and valuation.

Volatility and Risk

Gencor Industries has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Gencor Industries’ rivals have a beta of 4.49, meaning that their average share price is 349% more volatile than the S&P 500.

Earnings & Valuation

This table compares Gencor Industries and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Gencor Industries	$103.19 million	$14.67 million	14.05
Gencor Industries Competitors	$4.49 billion	$346.97 million	0.08

Gencor Industries’ rivals have higher revenue and earnings than Gencor Industries. Gencor Industries is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Gencor Industries and its rivals’ 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%
Gencor Industries Competitors	-1,937.17%	-13.11%	0.74%

Institutional & Insider Ownership

52.6% of shares of all “Machinery” companies are owned by institutional investors. 30.4% of Gencor Industries shares are owned by company insiders. Comparatively, 14.0% of shares of all “Machinery” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Gencor Industries and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gencor Industries	0	0	1	1	3.50
Gencor Industries Competitors	4054	14440	17846	767	2.41

Gencor Industries presently has a consensus target price of $17.60, indicating a potential upside of 21.63%. As a group, “Machinery” companies have a potential upside of 24.15%. Given Gencor Industries’ rivals higher possible upside, analysts plainly believe Gencor Industries has less favorable growth aspects than its rivals.

Summary

Gencor Industries beats its rivals on 8 of the 13 factors compared.

Gencor Industries Company Profile

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.