Generac vs Nexus Which Is Stronger?

Generac and Nexus are two prominent companies in the energy sector, each specializing in different aspects of the industry. Generac is known for its expertise in the manufacturing of power generation equipment, providing reliable backup power solutions for homes and businesses. On the other hand, Nexus focuses on developing innovative energy management software and solutions to help optimize energy usage and reduce costs. Investors are often drawn to both stocks for their potential in the rapidly evolving energy market. Let's take a closer look at how Generac and Nexus stocks stack up against each other.

Generac or Nexus?

When comparing Generac and Nexus, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Generac and Nexus.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Generac has a dividend yield of -%, while Nexus has a dividend yield of 0.32%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Generac reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Nexus reports a 5-year dividend growth of 5.59% year and a payout ratio of 14.19%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Generac P/E ratio at 36.47 and Nexus's P/E ratio at 44.34. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Generac P/B ratio is 4.43 while Nexus's P/B ratio is 4.46.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Generac has seen a 5-year revenue growth of 1.00%, while Nexus's is 0.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Generac's ROE at 12.33% and Nexus's ROE at 10.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $177.86 for Generac and €68.40 for Nexus. Over the past year, Generac's prices ranged from $108.89 to $195.94, with a yearly change of 79.94%. Nexus's prices fluctuated between €47.15 and €69.00, with a yearly change of 46.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.