Generac vs Yamaha

Generac and Yamaha are two leading companies in the power equipment industry, with both offering innovative and reliable products for residential and commercial use. Investors looking to capitalize on the growing demand for backup power solutions may consider investing in either Generac or Yamaha stocks. While Generac is known for its generators and power solutions, Yamaha also offers a wide range of quality power products. Both companies have shown strong financial performance and growth potential, making them attractive options for investors seeking to diversify their portfolios in the power equipment sector.

Generac or Yamaha?

When comparing Generac and Yamaha, 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 Yamaha.

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 Yamaha has a dividend yield of -%. 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, Yamaha reports a 5-year dividend growth of 0.00% year and a payout ratio of 38.03%.

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 42.66 and Yamaha's P/E ratio at 19.08. 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 4.30 while Yamaha's P/B ratio is 1.18.

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 Yamaha's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Generac's ROE at 10.12% and Yamaha's ROE at 6.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $169.91 for Generac and $8.43 for Yamaha. Over the past year, Generac's prices ranged from $79.86 to $175.86, with a yearly change of 120.21%. Yamaha's prices fluctuated between $6.02 and $9.16, with a yearly change of 52.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.