Gencor Industries (NASDAQ:GENC – Get Free Report) and Gorman-Rupp (NYSE:GRC – Get Free Report) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.
Institutional & Insider Ownership
59.3% of Gorman-Rupp shares are owned by institutional investors. 30.4% of Gencor Industries shares are owned by insiders. Comparatively, 11.6% of Gorman-Rupp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Gencor Industries and Gorman-Rupp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gencor Industries | 14.33% | 8.60% | 8.01% |
| Gorman-Rupp | 8.88% | 15.55% | 7.59% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gencor Industries | $103.19 million | 2.07 | $14.67 million | $1.03 | 14.15 |
| Gorman-Rupp | $682.39 million | 3.31 | $53.02 million | $2.37 | 36.05 |
Gorman-Rupp has higher revenue and earnings than Gencor Industries. Gencor Industries is trading at a lower price-to-earnings ratio than Gorman-Rupp, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and price targets for Gencor Industries and Gorman-Rupp, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gencor Industries | 0 | 0 | 1 | 1 | 3.50 |
| Gorman-Rupp | 0 | 1 | 1 | 1 | 3.00 |
Gencor Industries presently has a consensus target price of $17.60, suggesting a potential upside of 20.80%. Given Gencor Industries’ stronger consensus rating and higher possible upside, research analysts plainly believe Gencor Industries is more favorable than Gorman-Rupp.
Volatility and Risk
Gencor Industries has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, Gorman-Rupp has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.
Summary
Gorman-Rupp beats Gencor Industries on 8 of the 13 factors compared between the two stocks.
About Gencor Industries
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. It 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. The company also provides combustion systems that transform solid, liquid, or gaseous fuels into usable energy, or burn multiple fuels in asphalt and aggregate drying industries; and combustion systems for rotary dryers, kilns, fume and liquid incinerators, and fuel heaters, as well as industrial incinerators. In addition, it 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; specialty storage tanks for various industrial uses; and asphalt pavers under the Blaw-Knox brand. The company 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 1894 and is based in Orlando, Florida.
About Gorman-Rupp
The Gorman-Rupp Company designs, manufactures, and sells pumps and pump systems in the United States and internationally. The company’s products include self-priming centrifugal, standard centrifugal, magnetic drive centrifugal, axial and mixed flow, vertical turbine line shaft, submersible, high-pressure booster, rotary gear, diaphragm, bellows, and oscillating pumps. Its products are used in water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire suppression, heating, ventilating and air conditioning, military, and other liquid-handling applications. The company markets its products through a network of distributors, manufacturers’ representatives, third-party distributor catalogs, direct sales, and e-commerce. The Gorman-Rupp Company was founded in 1933 and is headquartered in Mansfield, Ohio.
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