A. O. Smith Corporation (AOS) vs Generac Holdings Inc. (GNRC)

A. O. Smith Corporation and Generac Holdings Inc. are both Specialty Industrial Machinery companies. Generac Holdings Inc. is the larger, with a market value of $10.2B against $8.9B — 1.1× the size. A. O. Smith Corporation trades at the lower P/E: 18.5× against 33.7×. Generac Holdings Inc. grew revenue faster over the last twelve months: 6.13% against −0.71%. A. O. Smith Corporation has the higher net margin (13.0% vs 6.52%) and the higher return on invested capital (19.1% vs 7.58%). Across the 22 metrics below, A. O. Smith Corporation leads on 15 and Generac Holdings Inc. on 7.

Valuation

Metric AOS GNRC Specialty Industrial Machinery median
P/E 18.46 33.66 25.64
P/S 2.36 2.20 2.81
P/B 4.93 3.37 2.99
Price to free cash flow 15.99 24.34 23.82
EV/EBITDA 11.99 15.77 15.15
EV/Sales 2.48 2.40 2.77
Earnings yield 5.42% 2.97% 3.07%
Free cash flow yield 6.25% 4.11% 3.67%

Profitability

Metric AOS GNRC Specialty Industrial Machinery median
Gross margin 38.62% 39.92% 35.46%
Operating margin 18.17% 10.37% 10.04%
Net margin 13.01% 6.52% 7.24%
Free cash flow margin 14.77% 9.04% 9.04%
Return on equity 26.97% 10.64% 10.73%
Return on assets 14.49% 5.13% 4.51%
Return on invested capital 19.09% 7.58% 5.00%

Growth

Metric AOS GNRC Specialty Industrial Machinery median
Revenue growth (TTM) (0.71%) 6.13% 6.59%
EPS growth (last fiscal year) 6.06% (50.09%) 5.97%
Revenue growth, 5-year CAGR 5.76% 11.11% 8.53%
Net income growth, 5-year CAGR 9.63% (14.57%) 6.58%

Health

Metric AOS GNRC Specialty Industrial Machinery median
Debt to equity 0.37 0.44 0.33
Current ratio 1.64 1.97 2.08
Net debt to EBITDA (0.05) 2.04 1.32

Dividend

Metric AOS GNRC Specialty Industrial Machinery median
Dividend yield 2.20% — 1.11%
Payout ratio 0.41 — 0.31

Size

Metric AOS GNRC Specialty Industrial Machinery median
Market cap 8.94b 10.17b 2.19b

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