Comparing Omnitek Engineering (OTCMKTS:OMTK) and Generac (NYSE:GNRC)

Omnitek Engineering (OTCMKTS:OMTK) 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 institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Omnitek Engineering and Generac, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omnitek Engineering	0	0	0	0	0.00
Generac	0	5	13	1	2.79

Generac has a consensus target price of $220.19, indicating a potential downside of 4.97%. Given Generac’s stronger consensus rating and higher possible upside, analysts plainly believe Generac is more favorable than Omnitek Engineering.

Valuation & Earnings

This table compares Omnitek Engineering and Generac”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omnitek Engineering	$1.02 million	0.35	-$170,000.00	$0.02	0.82
Generac	$4.21 billion	3.23	$159.55 million	$2.68	86.46

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

Institutional & Insider Ownership

84.0% of Generac shares are owned by institutional investors. 45.5% of Omnitek Engineering shares are owned by insiders. Comparatively, 2.7% of Generac shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Omnitek Engineering	18.80%	-22.26%	28.98%
Generac	3.79%	14.55%	6.96%

Risk and Volatility

Omnitek Engineering has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Generac has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500.

Summary

Generac beats Omnitek Engineering on 12 of the 15 factors compared between the two stocks.

About Omnitek Engineering

Omnitek Engineering Corp. develops and sells technology to convert diesel engines to an alternative fuel, natural gas engines, and complementary products in the United States and internationally. It offers conversion kits for converting diesel engines to run on an alternative fuel, including compressed, liquefied, and renewable natural gas, as well as liquid petroleum gas; natural gas engines and components; and high-pressure natural gas coalescing filters. The company's products are used for stationary applications; and the transportation market, such as light commercial vehicles, minibuses, heavy-duty trucks, and municipal buses, as well as rail and marine applications. It sells and delivers its products through its distributors, system integrators, fleet operators, and engine conversion companies, as well as directly to end-users. The company was incorporated in 2001 and is headquartered in Vista, California.

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.