Financial Analysis: Gencor Industries, Inc. (DE) (GENC) versus Douglas Dynamics (PLOW)
Gencor Industries, Inc. (DE) (NASDAQ:GENC) and Douglas Dynamics (NYSE:PLOW) are both small-cap industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
Institutional & Insider Ownership
44.7% of Gencor Industries, Inc. (DE) shares are held by institutional investors. Comparatively, 89.4% of Douglas Dynamics shares are held by institutional investors. 31.8% of Gencor Industries, Inc. (DE) shares are held by company insiders. Comparatively, 3.1% of Douglas Dynamics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Gencor Industries, Inc. (DE) and Douglas Dynamics’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gencor Industries, Inc. (DE)||$80.61 million||1.94||$8.41 million||N/A||N/A|
|Douglas Dynamics||$474.93 million||1.71||$55.32 million||$1.36||26.43|
Douglas Dynamics has higher revenue and earnings than Gencor Industries, Inc. (DE).
This is a summary of current recommendations and price targets for Gencor Industries, Inc. (DE) and Douglas Dynamics, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gencor Industries, Inc. (DE)||0||0||0||0||N/A|
Douglas Dynamics has a consensus target price of $43.50, indicating a potential upside of 21.00%. Given Douglas Dynamics’ higher probable upside, analysts clearly believe Douglas Dynamics is more favorable than Gencor Industries, Inc. (DE).
Volatility & Risk
Gencor Industries, Inc. (DE) has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, Douglas Dynamics has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.
Douglas Dynamics pays an annual dividend of $1.06 per share and has a dividend yield of 2.9%. Gencor Industries, Inc. (DE) does not pay a dividend. Douglas Dynamics pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Douglas Dynamics has increased its dividend for 5 consecutive years.
This table compares Gencor Industries, Inc. (DE) and Douglas Dynamics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gencor Industries, Inc. (DE)||10.16%||7.35%||6.72%|
Douglas Dynamics beats Gencor Industries, Inc. (DE) on 11 of the 15 factors compared between the two stocks.
Gencor Industries, Inc. (DE) Company Profile
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. The company 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. It also provides combustion systems that transform solid, liquid, or gaseous fuels into usable energy, or burn multiple fuels in asphalt and aggregate drying industries; soil remediation machines; and combustion systems for rotary dryers, kilns, fume and liquid incinerators, and fuel heaters, as well as industrial incinerators. In addition, the company 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; and specialty storage tanks for various industrial uses. It 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 1968 and is based in Orlando, Florida.
Douglas Dynamics Company Profile
Douglas Dynamics, Inc. operates as a manufacturer and up-fitter of commercial work truck attachments and equipment primarily in North America. It operates in two segments, Work Truck Attachments and Work Truck Solutions. The Work Truck Attachments segment manufactures and sells snow and ice control attachments, including snowplows, and sand and salt spreaders for light and heavy duty trucks, as well as various related parts and accessories. It also provides customized turnkey solutions to governmental agencies, such as departments of transportation and municipalities. This segment offers snow and ice management attachments under the BLIZZARD, FISHER, HENDERSON, SNOWEX, and WESTERN brands; turf care equipment under the TURFEX brand; and industrial maintenance equipment under the SWEEPEX brand. It sells its products to professional snowplowers who are contracted to remove snow and ice from commercial, municipal, and residential areas. The Work Truck Solutions segment provides truck and vehicle up-fits where it attaches component pieces of equipment, truck bodies, racking, and storage solutions to a vehicle chassis for use by end users for work related purposes; and manufactures storage solutions for trucks and vans, and cable pulling equipment for trucks. This segment offers up-fit and storage solutions under the DEJANA brand and its related sub-brands. The company was founded in 2004 and is headquartered in Milwaukee, Wisconsin.
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