Head-To-Head Survey: Generac (NYSE:GNRC) & NeoVolta (NASDAQ:NEOV)

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

Risk & Volatility

NeoVolta has a beta of -0.87, suggesting that its share price is 187% less volatile than the S&P 500. Comparatively, Generac has a beta of 1.91, suggesting that its share price is 91% more volatile than the S&P 500.

Institutional and Insider Ownership

5.1% of NeoVolta shares are held by institutional investors. Comparatively, 84.0% of Generac shares are held by institutional investors. 4.0% of NeoVolta shares are held by insiders. Comparatively, 2.4% of Generac shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares NeoVolta and Generac”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeoVolta	$8.43 million	22.83	-$5.03 million	($0.33)	-10.30
Generac	$4.21 billion	2.87	$159.55 million	$4.34	47.17

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

Analyst Ratings

This is a summary of recent recommendations and price targets for NeoVolta and Generac, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeoVolta	1	2	4	0	2.43
Generac	0	6	12	2	2.80

NeoVolta presently has a consensus target price of $9.50, suggesting a potential upside of 179.41%. Generac has a consensus target price of $295.40, suggesting a potential upside of 44.29%. Given NeoVolta’s higher probable upside, equities research analysts plainly believe NeoVolta is more favorable than Generac.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NeoVolta	-63.35%	-141.89%	-89.61%
Generac	5.82%	17.83%	8.58%

Summary

Generac beats NeoVolta on 12 of the 15 factors compared between the two stocks.

About NeoVolta

NeoVolta Inc. designs, manufactures, and sells energy storage systems in the United States. It provides NV14, NV14-K, and NV 24 energy storage systems, which stores and uses energy through batteries and an inverter at residential or commercial sites. The company markets and sells its products directly to certified solar installers and solar equipment distributors. NeoVolta Inc. was formed in 2018 and is headquartered in Poway, California.

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.