Comparing Generac (NYSE:GNRC) & Ingersoll Rand (NYSE:IR)

Generac (NYSE:GNRC) and Ingersoll Rand (NYSE:IR) are both large-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.

Profitability

This table compares Generac and Ingersoll Rand’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Generac	3.79%	14.55%	6.96%
Ingersoll Rand	7.60%	12.62%	7.11%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Generac and Ingersoll Rand, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Generac	0	6	12	1	2.74
Ingersoll Rand	0	5	4	0	2.44

Generac currently has a consensus price target of $222.06, suggesting a potential upside of 11.04%. Ingersoll Rand has a consensus price target of $101.86, suggesting a potential upside of 24.22%. Given Ingersoll Rand’s higher possible upside, analysts clearly believe Ingersoll Rand is more favorable than Generac.

Institutional and Insider Ownership

84.0% of Generac shares are owned by institutional investors. Comparatively, 95.3% of Ingersoll Rand shares are owned by institutional investors. 2.7% of Generac shares are owned by insiders. Comparatively, 0.6% of Ingersoll Rand shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Generac has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500. Comparatively, Ingersoll Rand has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Valuation & Earnings

This table compares Generac and Ingersoll Rand”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Generac	$4.21 billion	2.79	$159.55 million	$2.68	74.62
Ingersoll Rand	$7.65 billion	4.20	$581.40 million	$1.45	56.55

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

Summary

Generac beats Ingersoll Rand on 8 of the 15 factors compared between the two stocks.

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.

About Ingersoll Rand

Ingersoll Rand Inc. provides various mission-critical air, gas, liquid, and solid flow creation technologies services and solutions worldwide. It operates through two segments, Industrial Technologies and Services, and Precision and Science Technologies. The Industrial Technologies and Services segment designs, manufactures, markets, and services air and gas compression, vacuum, and blower products; fluid transfer equipment and loading systems; and power tools and lifting equipment, including associated aftermarket parts, consumables, air treatment equipment, controls, other accessories, and services under the under the Ingersoll Rand, Gardner Denver, Nash, CompAir, Elmo Rietschle brands, etc. The Precision and Science Technologies segment designs, manufactures, and markets diaphragm, piston, water-powered, peristaltic, gear, vane, progressive cavity, and syringe pumps; and gas boosters, hydrogen compression systems, automated liquid handling systems, odorant injection systems, controls, software, and other related components and accessories for liquid and gas dosing, transfer, dispensing, compression, sampling, pressure management, and flow control in specialized or critical applications under the Air Dimensions, Albin, ARO, Dosatron, Haskel, Ingersoll Rand, LMI, Maximus, Milton Roy, MP, Oberdorfer, Seepex, Thomas, Welch, Williams, YZ, and Zinnser Analytic brand names. This segment's products are used in medical, life sciences, industrial manufacturing, water and wastewater, chemical processing, energy, food and beverage, agriculture, and other markets. It sells through an integrated network of direct sales representatives and independent distributors. The company was formerly known as Gardner Denver Holdings, Inc. and changed its name to Ingersoll Rand Inc. in March 2020. Ingersoll Rand Inc. was founded in 1859 and is headquartered in Davidson, North Carolina.