Comparing American Superconductor (AMSC) & Generac (GNRC)

American Superconductor (NASDAQ: AMSC) and Generac (NYSE:GNRC) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Profitability

How to Become a New Pot Stock Millionaire

This table compares American Superconductor and Generac’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Superconductor -65.96% -60.92% -36.59%
Generac 9.53% 45.26% 10.95%

Analyst Recommendations

This is a summary of recent recommendations for American Superconductor and Generac, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Superconductor 0 2 5 0 2.71
Generac 1 4 4 0 2.33

American Superconductor presently has a consensus price target of $7.14, suggesting a potential upside of 11.61%. Generac has a consensus price target of $51.83, suggesting a potential upside of 8.10%. Given American Superconductor’s stronger consensus rating and higher probable upside, equities analysts plainly believe American Superconductor is more favorable than Generac.

Volatility & Risk

American Superconductor has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Generac has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500.

Valuation & Earnings

This table compares American Superconductor and Generac’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Superconductor $75.19 million 1.78 -$27.37 million ($2.16) -2.96
Generac $1.67 billion 1.79 $160.29 million $3.40 14.10

Generac has higher revenue and earnings than American Superconductor. American Superconductor is trading at a lower price-to-earnings ratio than Generac, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

25.4% of American Superconductor shares are held by institutional investors. 2.6% of American Superconductor shares are held by company insiders. Comparatively, 3.0% of Generac shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Generac beats American Superconductor on 9 of the 13 factors compared between the two stocks.

About American Superconductor

American Superconductor Corporation (AMSC) is a provider of megawatt-scale solutions. The Company operates through two segments: Wind and Grid. Through the Company’s Windtec Solutions brand, the Wind business segment enables manufacturers to field wind turbines. Through the Company’s Gridtec Solutions, the Grid business segment enables electric utilities and renewable energy project developers to connect, transmit and distribute power. AMSC supplies power electronics and control systems, licenses its engineered wind turbine designs and provides customer support services to wind turbine manufacturers. The Company provides a range of power electronics and software-based control systems. AMSC provides transmission planning services that enable it to identify power grid congestion and other risks. The Company also sells grid interconnection solutions for wind farms and solar power plants, power quality systems, and transmission and distribution cable systems.

About Generac

Generac Holdings Inc. designs, manufactures, and sells power generation equipment and other engine powered products for the residential, light commercial, and industrial markets worldwide. The company offers engines, alternators, transfer switches, and other components fueled by natural gas, liquid propane, gasoline, diesel, and bi-fuel. It also provides residential automatic standby generators ranging in output from 6kW to 60kW; air-cooled engine residential standby generators ranging from 6kW to 22kW; liquid-cooled engine generators with outputs ranging from 22kW to 60kW; cellular-based remote monitoring system for home standby generators; and industrial diesel generators ranging in sizes up to 3,250kW. In addition, the company offers various portable generators ranging in size from 800W to 17.5kW; engine driven power washers; water pumps; and outdoor power equipment, such as trimmers and brush mowers, log splitters, lawn and leaf vacuums, and chipper shredders. Further, it provides light towers, mobile generators, and flameless heaters; light-commercial standby generators ranging from 22kW to 150kW and related transfer switches providing three-phase power small and mid-sized businesses; and industrial generators ranging in output from 10kW up to 3,250kW as emergency backup for large healthcare, telecom, datacom, commercial office, municipal, and manufacturing markets. Additionally, the company sells aftermarket service parts to dealers, product accessories, and proprietary engines to third-party original equipment manufacturers. It distributes its products through independent residential dealers, industrial distributors and dealers, national and regional retailers, e-commerce merchants, electrical and HVAC wholesalers, catalogs, and equipment rental companies and distributors; and directly to end users under the Powermate, DeWalt, DR, and Pramac brand names. Generac Holdings Inc. was founded in 1959 and is headquartered in Waukesha, Wisconsin.

Receive News & Ratings for American Superconductor Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for American Superconductor and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply