Generac vs Solar Which Is Stronger?

Generac and Solar stocks are two popular investment options in the renewable energy sector. Generac Holdings Inc. is a leading manufacturer of backup generator systems, while solar stocks typically refer to companies involved in the production and installation of solar panels. Both sectors have seen significant growth in recent years as the world shifts towards greener energy sources. Investors often compare the two types of stocks to determine which offers the best opportunity for long-term profitability and sustainability in a rapidly changing energy landscape.

Generac or Solar?

When comparing Generac and Solar, 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 Solar.

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 Solar has a dividend yield of 9.85%. 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, Solar reports a 5-year dividend growth of 35.10% year and a payout ratio of 142.21%.

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 34.96 and Solar's P/E ratio at 14.44. 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 4.24 while Solar's P/B ratio is 1.25.

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 Solar's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Generac's ROE at 12.33% and Solar's ROE at 8.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $171.32 for Generac and kr301.50 for Solar. Over the past year, Generac's prices ranged from $108.89 to $195.94, with a yearly change of 79.94%. Solar's prices fluctuated between kr280.50 and kr479.00, with a yearly change of 70.77%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.