Critical Comparison: Generac (GNRC) vs. XT Energy Group (XTNY)

Generac (NYSE:GNRC) and XT Energy Group (OTCMKTS:XTNY) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.

Institutional and Insider Ownership

93.6% of Generac shares are held by institutional investors. 3.0% of Generac shares are held by insiders. Comparatively, 62.0% of XT Energy Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Generac and XT Energy Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Generac $1.67 billion 2.11 $160.29 million $3.40 16.74
XT Energy Group $15.27 million 280.23 -$1.36 million N/A N/A

Generac has higher revenue and earnings than XT Energy Group.

Risk & Volatility

Generac has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, XT Energy Group has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Generac and XT Energy Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Generac 0 4 3 0 2.43
XT Energy Group 0 0 0 0 N/A

Generac presently has a consensus price target of $56.26, suggesting a potential downside of 1.15%. Given Generac’s higher probable upside, equities analysts clearly believe Generac is more favorable than XT Energy Group.

Profitability

This table compares Generac and XT Energy Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Generac 12.45% 47.44% 13.43%
XT Energy Group -8.95% -46.58% -5.43%

Summary

Generac beats XT Energy Group on 8 of the 11 factors compared between the two stocks.

Generac Company Profile

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.

XT Energy Group Company Profile

Xiangtian (USA) Air Power Co., Ltd. engages in the compressed air energy storage field primarily in China. The company offers air compression power generation systems with a photovoltaic (PV) installation for industrial users, such as factories and power plants; and PV systems without the air compression generation technology. It also provides air source heat pump systems that transfers heat from outside to inside of a building, or vice versa; PV panels; synthetic fuel and related products, including fuel additives, engine lubricants, and methanol fuel; and hydraulic parts comprising hydraulic cylinders, diesel pumps, motor oil pumps, and hydraulic valves, as well as designs and manufactures hydraulic pump stations, cylinders, and high-pressure valves. The company was formerly known as Goa Sweet Tours, Ltd. and changed its name to Xiangtian (USA) Air Power Co., Ltd. in May 2012. Xiangtian (USA) Air Power Co., Ltd. was founded in 2008 and is based in Xianning, China.

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