Critical Contrast: Xometry (NASDAQ:XMTR) vs. Generac (NYSE:GNRC)

Xometry (NASDAQ:XMTR) and Generac (NYSE:GNRC) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for Xometry and Generac, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xometry	0	3	6	0	2.67
Generac	0	6	13	0	2.68

Xometry currently has a consensus target price of $40.44, indicating a potential downside of 17.73%. Generac has a consensus target price of $174.56, indicating a potential downside of 2.02%. Given Generac’s stronger consensus rating and higher possible upside, analysts clearly believe Generac is more favorable than Xometry.

Profitability

This table compares Xometry and Generac’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xometry	-10.20%	-6.79%	-3.01%
Generac	7.91%	19.14%	9.19%

Institutional & Insider Ownership

97.3% of Xometry shares are held by institutional investors. Comparatively, 84.0% of Generac shares are held by institutional investors. 9.7% of Xometry shares are held by insiders. Comparatively, 2.7% of Generac shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Xometry and Generac”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xometry	$545.53 million	4.58	-$50.40 million	($1.23)	-39.97
Generac	$4.30 billion	2.43	$325.26 million	$6.02	29.60

Generac has higher revenue and earnings than Xometry. Xometry is trading at a lower price-to-earnings ratio than Generac, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Xometry has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Generac has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500.

Summary

Generac beats Xometry on 11 of the 14 factors compared between the two stocks.

About Xometry

Xometry, Inc. operates an online marketplace that enables buyers to source custom-manufactured parts and assemblies in the United States and internationally. It provides computer numerical control manufacturing, sheet metal forming, and sheet cutting; 3D printing, including fused deposition modeling, direct metal laser sintering, PolyJet, stereolithography, selective laser sintering, binder jetting, carbon digital light synthesis, multi jet fusion, and lubricant sublayer photo-curing; and die casting, stamping, injection molding, urethane casting, tube cutting, and tube bending, as well as finishing services, rapid prototyping, and high-volume production services. It serves aerospace, healthcare, robotics, industrial, defense, energy, automotive, government, education, and consumer goods industries. The company was formerly known as NextLine Manufacturing Corp. and changed its name to Xometry, Inc. in June 2015. Xometry, Inc. was incorporated in 2013 and is headquartered in North Bethesda, Maryland.

About Generac

Generac Holdings Inc. designs, manufactures, and distributes various energy technology products and solution worldwide. The company offers residential automatic standby generators, automatic transfer switch, air-cooled engine residential standby generators, and liquid-cooled engine generators; Mobile Link, a remote monitoring system for home standby generators; residential storage solution, which consists of a system of batteries, an inverter, photovoltaic optimizers, power electronic controls, and other components; smart home solutions, such as smart thermostats and a suite of home monitoring products. It also provides smart home energy management devices and sensors for heating and cooling system; smart doorbell cameras; and portable and inverter generators; multiple portable battery solutions; manual transfer switches; outdoor power equipment, including trimmers, field and brush mowers, log splitters, stump grinders, chipper shredders, lawn and leaf vacuums, and pressure washers and water pumps; and battery-powered turf care products. In addition, the company offers commercial and industrial products comprising cleaner-burning natural gas fueled generators; light-commercial standby generators and related transfer switches; stationary generators; single-engine industrial generators; industrial standby generators; industrial transfer switches; light towers, mobile generators, commercial mobile pumps, heaters, dust-suppression equipment, and mobile energy storage systems; stationary energy storage system and related inverter products; and aftermarket service parts and product accessories. The company distributes its products through independent residential dealers, industrial distributors and dealers, national and regional retailers, e-commerce partners, electrical/HVAC/solar wholesalers, solar installers, catalogs, equipment rental companies, and other equipment distributors; and directly to end users. The company was founded in 1959 and is headquartered in Waukesha, Wisconsin.