Comparing Gorman-Rupp (NYSE:GRC) & Gencor Industries (NASDAQ:GENC)

Gorman-Rupp (NYSE:GRC) and Gencor Industries (NASDAQ:GENC) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Volatility and Risk

Gorman-Rupp has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Gencor Industries has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.

Earnings and Valuation

This table compares Gorman-Rupp and Gencor Industries”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gorman-Rupp	$682.39 million	3.22	$53.02 million	$2.37	35.08
Gencor Industries	$103.19 million	2.38	$14.67 million	$1.03	16.25

Gorman-Rupp has higher revenue and earnings than Gencor Industries. Gencor Industries is trading at a lower price-to-earnings ratio than Gorman-Rupp, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

59.3% of Gorman-Rupp shares are held by institutional investors. 11.6% of Gorman-Rupp shares are held by insiders. Comparatively, 30.4% of Gencor Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Gorman-Rupp and Gencor Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gorman-Rupp	8.88%	15.55%	7.59%
Gencor Industries	14.33%	8.60%	8.01%

Analyst Recommendations

This is a summary of recent recommendations for Gorman-Rupp and Gencor Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gorman-Rupp	0	1	1	1	3.00
Gencor Industries	0	0	1	1	3.50

Gencor Industries has a consensus price target of $17.60, indicating a potential upside of 5.16%. Given Gencor Industries’ stronger consensus rating and higher probable upside, analysts plainly believe Gencor Industries is more favorable than Gorman-Rupp.

Summary

Gorman-Rupp beats Gencor Industries on 8 of the 13 factors compared between the two stocks.

About Gorman-Rupp

The Gorman-Rupp Company designs, manufactures, and sells pumps and pump systems in the United States and internationally. The company’s products include self-priming centrifugal, standard centrifugal, magnetic drive centrifugal, axial and mixed flow, vertical turbine line shaft, submersible, high-pressure booster, rotary gear, diaphragm, bellows, and oscillating pumps. Its products are used in water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire suppression, heating, ventilating and air conditioning, military, and other liquid-handling applications. The company markets its products through a network of distributors, manufacturers’ representatives, third-party distributor catalogs, direct sales, and e-commerce. The Gorman-Rupp Company was founded in 1933 and is headquartered in Mansfield, Ohio.

About Gencor Industries

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.