Gencor Industries Inc. (GENC) vs Hydrofarm Holdings Group, Inc. (HYFM)

Gencor Industries Inc. and Hydrofarm Holdings Group, Inc. are both Farm & Heavy Construction Machinery companies. Gencor Industries Inc. is the larger, with a market value of $252.3M against $4.6M — 54.5× the size. Hydrofarm Holdings Group, Inc. has negative trailing earnings, so its P/E is not meaningful; Gencor Industries Inc. trades at 17.2×. Gencor Industries Inc. grew revenue faster over the last twelve months: −6.39% against −34.1%. Gencor Industries Inc. has the higher net margin (13.5% vs −267.2%) and the higher return on invested capital (13.3% vs −646.8%). Across the 18 metrics below, Gencor Industries Inc. leads on 16 and Hydrofarm Holdings Group, Inc. on 2.

Valuation

Metric GENC HYFM Farm & Heavy Construction Machinery median
P/E 17.25 n/m 23.38
P/S 2.33 0.04 0.81
P/B 1.14 n/m 1.43
Price to free cash flow n/m n/m 25.31
EV/EBITDA 6.10 n/m 12.13
EV/Sales 0.83 1.13 1.20
Earnings yield 5.80% (6,257.73%) 2.73%
Free cash flow yield (0.63%) (78.40%) 3.02%

Profitability

Metric GENC HYFM Farm & Heavy Construction Machinery median
Gross margin 28.58% 9.42% 24.21%
Operating margin 11.74% (253.04%) 4.47%
Net margin 13.53% (267.20%) 1.49%
Free cash flow margin (1.47%) (3.42%) 2.15%
Return on equity 6.85% (535.51%) 4.16%
Return on assets 6.49% (115.49%) 1.45%
Return on invested capital 13.32% (646.82%) 3.36%

Growth

Metric GENC HYFM Farm & Heavy Construction Machinery median
Revenue growth (TTM) (6.39%) (34.07%) 2.18%
EPS growth (last fiscal year) 8.08% (329.70%) —
Revenue growth, 5-year CAGR 8.32% (17.07%) 7.34%
Net income growth, 5-year CAGR 23.14% 0.00% 0.00%

Health

Metric GENC HYFM Farm & Heavy Construction Machinery median
Debt to equity 0.00 (1.37) 0.67
Current ratio 19.16 0.27 1.98
Net debt to EBITDA (8.32) (0.45) 1.12

Dividend

Metric GENC HYFM Farm & Heavy Construction Machinery median
Dividend yield — — 1.45%
Payout ratio 0.00 0.00 0.08

Size

Metric GENC HYFM Farm & Heavy Construction Machinery median
Market cap 252.26m 4.63m 772.81m

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