Analyzing Generac (NYSE:GNRC) and NOVONIX (OTCMKTS:NVNXF)

NOVONIX (OTCMKTS:NVNXF) and Generac (NYSE:GNRC) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Risk & Volatility

NOVONIX has a beta of 2.41, meaning that its stock price is 141% more volatile than the S&P 500. Comparatively, Generac has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NOVONIX	N/A	N/A	N/A
Generac	5.82%	17.83%	8.58%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NOVONIX	$5.62 million	3.62	-$92.72 million	N/A	N/A
Generac	$4.21 billion	2.90	$159.55 million	$4.34	47.58

Generac has higher revenue and earnings than NOVONIX.

Analyst Recommendations

This is a summary of current ratings and price targets for NOVONIX and Generac, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NOVONIX	0	0	0	0	0.00
Generac	0	5	12	2	2.84

Generac has a consensus price target of $284.84, suggesting a potential upside of 37.93%. Given Generac’s stronger consensus rating and higher probable upside, analysts plainly believe Generac is more favorable than NOVONIX.

Insider & Institutional Ownership

84.0% of Generac shares are owned by institutional investors. 6.6% of NOVONIX shares are owned by company insiders. Comparatively, 2.4% of Generac shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Generac beats NOVONIX on 10 of the 13 factors compared between the two stocks.

About NOVONIX

NOVONIX Limited provides battery materials and development technology for battery manufacturers, materials companies, automotive original equipment manufacturers (OEMs), and consumer electronics manufacturers in North America, Asia, Australia, and Europe. It operates through Battery Materials and Battery Technology segments. The Battery Materials segment develops and manufactures battery anode materials. The Battery Technology segment develops battery cell testing equipment, performs consulting services, and carries out research and development in battery development. The company is involved in the investment and real estate borrowing activities; and offers battery technology, battery testing hardware equipment, and battery testing and development consulting services. The company was formerly known as Graphitecorp Limited and changed its name to NOVONIX Limited in July 2017. NOVONIX Limited was incorporated in 2012 and is based in Brisbane, Australia.

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.