Critical Contrast: Gencor Industries, Inc. (DE) (GENC) & Columbus McKinnon (CMCO)

Gencor Industries, Inc. (DE) (NASDAQ:GENC) and Columbus McKinnon (NASDAQ:CMCO) are both small-cap industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

44.2% of Gencor Industries, Inc. (DE) shares are owned by institutional investors. Comparatively, 94.2% of Columbus McKinnon shares are owned by institutional investors. 30.6% of Gencor Industries, Inc. (DE) shares are owned by company insiders. Comparatively, 2.3% of Columbus McKinnon shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.



Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Gencor Industries, Inc. (DE) and Columbus McKinnon, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gencor Industries, Inc. (DE) 0 0 0 0 N/A
Columbus McKinnon 0 0 3 0 3.00

Columbus McKinnon has a consensus target price of $51.33, suggesting a potential upside of 46.00%. Given Columbus McKinnon’s higher possible upside, analysts clearly believe Columbus McKinnon is more favorable than Gencor Industries, Inc. (DE).

Volatility and Risk

Gencor Industries, Inc. (DE) has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Columbus McKinnon has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500.

Dividends

Columbus McKinnon pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. Gencor Industries, Inc. (DE) does not pay a dividend. Columbus McKinnon pays out 10.0% of its earnings in the form of a dividend.

Profitability

This table compares Gencor Industries, Inc. (DE) and Columbus McKinnon’s 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%
Columbus McKinnon 2.10% 13.04% 4.58%

Earnings & Valuation

This table compares Gencor Industries, Inc. (DE) and Columbus McKinnon’s 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 2.00 $8.41 million N/A N/A
Columbus McKinnon $839.42 million 0.97 $22.06 million $2.01 17.49

Columbus McKinnon has higher revenue and earnings than Gencor Industries, Inc. (DE).

Summary

Columbus McKinnon beats Gencor Industries, Inc. (DE) on 9 of the 14 factors compared between the two stocks.

About Gencor Industries, Inc. (DE)

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.

About Columbus McKinnon

Columbus McKinnon Corporation designs, manufactures, and markets hoists, actuators, cranes, rigging tools, digital power control systems, and other material handling products for commercial and industrial applications worldwide. It offers various electric chain hoists, electric wire rope hoists, hand-operated hoists, winches, lever tools, and air-powered hoists under the Budgit, Chester, CM, Coffing, Little Mule, Pfaff, Shaw-Box, Yale, STAHL, and other brands; below-the-hook tooling, clamps, and textile strappings; and explosion-protected hoists, as well as supplies hoist trolleys. The company also provides alloy and carbon steel chains; alloy chains under the Herc-Alloy brand; load chains and carbon steel welded-link chains; alloy and carbon steel closed-die forged chain attachments, including hooks, shackles, Hammerloks, and master links; and carbon steel forged and stamped products, such as load binders, logging tools, and other securing devices. In addition, it offers power and motion control systems, which comprise AC and DC drive systems, radio remote controls, push button pendant stations, brakes, collision avoidance, and power delivery subsystems, as well as AC and DC digital motion control systems for underground coal mining equipment; industrial components, including mechanical and electromechanical actuators and rotary unions; and overhead steel jib and gantry cranes, and overhead aluminum light rail workstations under the CES, Abell-Howe, and Washington Equipment brands. Further, the company provides DC high-performance elevator drives, AC drives, and regenerative controls; and tire shredders. The company sells its products through its sales force and independent distributors. Columbus McKinnon Corporation was founded in 1875 and is headquartered in Getzville, New York.

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