Broadwind Energy (NASDAQ:BWEN – Get Free Report) and Generac (NYSE:GNRC – Get Free Report) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.
Insider and Institutional Ownership
33.3% of Broadwind Energy shares are held by institutional investors. Comparatively, 84.0% of Generac shares are held by institutional investors. 6.1% of Broadwind Energy shares are held by company insiders. Comparatively, 2.4% of Generac shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Broadwind Energy and Generac”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Broadwind Energy | $158.05 million | 0.59 | $5.24 million | $0.22 | 18.00 |
| Generac | $4.21 billion | 3.77 | $159.55 million | $3.19 | 84.59 |
Generac has higher revenue and earnings than Broadwind Energy. Broadwind Energy is trading at a lower price-to-earnings ratio than Generac, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Broadwind Energy has a beta of 1.8, suggesting that its share price is 80% more volatile than the S&P 500. Comparatively, Generac has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Broadwind Energy and Generac, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Broadwind Energy | 0 | 2 | 1 | 0 | 2.33 |
| Generac | 0 | 6 | 11 | 1 | 2.72 |
Broadwind Energy currently has a consensus price target of $6.00, suggesting a potential upside of 51.52%. Generac has a consensus price target of $278.65, suggesting a potential upside of 3.26%. Given Broadwind Energy’s higher possible upside, equities research analysts clearly believe Broadwind Energy is more favorable than Generac.
Profitability
This table compares Broadwind Energy and Generac’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Broadwind Energy | 3.30% | -2.05% | -1.09% |
| Generac | 4.37% | 15.45% | 7.35% |
Summary
Generac beats Broadwind Energy on 13 of the 15 factors compared between the two stocks.
About Broadwind Energy
Broadwind, Inc. manufactures and sells structures, equipment, and components for clean tech and other specialized applications primarily in the United States. It operates through three segments: Heavy Fabrications, Gearing, and Industrial Solutions. The Heavy Fabrications segment provides fabrications to various industrial markets. It offers steel towers and adapters primarily to wind turbine manufacturers. Its Gearing segment provides gearing, gearboxes, and precision machined components to a range of customers in diverse markets, including surface and underground mining, wind energy, steel, material handling, infrastructure, onshore and offshore oil and gas fracking and drilling, marine, and other industrial markets. This segment also offers heat treat services for aftermarket and original equipment manufacturer applications. The Industrial Solutions segment provides supply chain solutions for offering instrumentation and controls, valve assemblies, sensor devices, fuel system components, electrical junction boxes and wiring, energy storage services, and electromechanical devices; light fabrication, inventory management, and kitting and assembly services; packaging solutions; and supply chain solutions, light fabrication, inventory management, and kitting and assembly services for combined cycle natural gas turbine market. It sells its products to the energy, mining, and infrastructure sectors through its direct sales force and independent sales agents. The company was formerly known as Broadwind Energy, Inc. and changed its name to Broadwind, Inc. in May 2020. Broadwind, Inc. is headquartered in Cicero, Illinois.
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.
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