Financial Contrast: Spirax Group (OTCMKTS:SPXSY) versus Generac (NYSE:GNRC)

Spirax Group (OTCMKTS:SPXSY) and Generac (NYSE:GNRC) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Insider and Institutional Ownership

0.4% of Spirax Group shares are owned by institutional investors. Comparatively, 84.0% of Generac shares are owned by institutional investors. 2.7% of Generac shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Spirax Group and Generac”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spirax Group	$2.13 billion	N/A	$244.34 million	N/A	N/A
Generac	$4.30 billion	2.30	$325.26 million	$5.25	32.01

Generac has higher revenue and earnings than Spirax Group.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Spirax Group and Generac, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spirax Group	0	1	0	1	3.00
Generac	1	3	15	1	2.80

Generac has a consensus price target of $195.29, indicating a potential upside of 16.20%. Given Generac’s higher probable upside, analysts clearly believe Generac is more favorable than Spirax Group.

Volatility and Risk

Spirax Group has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Generac has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Spirax Group	N/A	N/A	N/A
Generac	6.92%	17.63%	8.50%

Summary

Generac beats Spirax Group on 10 of the 11 factors compared between the two stocks.

About Spirax Group

Spirax-Sarco Engineering plc provides engineered solutions it operates through three segments: Steam Thermal Solutions; Electric Thermal Solutions; and Watson-Marlow Fluid Technology Solutions. The company offers industrial and commercial steam systems, including condensate management, controls, and thermal energy management products and solutions for heating, curing, cooking, drying, cleaning, sterilizing, space heating, humidifying, vacuum packing, and producing hot water; electrical process heating and temperature management solutions, such as industrial heaters and systems, heat tracing, and various component technologies for industrial processes; and peristaltic and niche pumps and associated fluid path technologies, including tubing, and specialty filling systems and products for single-use applications. It serves pharmaceutical and biotechnology, food, beverage, oil, gas, chemical, power generation, healthcare, water and wastewater, buildings, mining and precious metal processing, semiconductor, and transport sectors, as well as original equipment manufacturers. The company sells its products directly, as well as through distributors. It operates in Europe, the Middle East, and Africa; the Asia Pacific; and the Americas. The company was founded in 1888 and is headquartered in Cheltenham, the United Kingdom.

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.