Gencor Industries (NASDAQ:GENC – Get Free Report) and Trinity Industries (NYSE:TRN – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.
Analyst Ratings
This is a breakdown of recent ratings for Gencor Industries and Trinity Industries, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gencor Industries | 0 | 1 | 1 | 1 | 3.00 |
| Trinity Industries | 0 | 3 | 0 | 0 | 2.00 |
Gencor Industries presently has a consensus price target of $19.30, suggesting a potential upside of 7.34%. Trinity Industries has a consensus price target of $35.00, suggesting a potential upside of 36.46%. Given Trinity Industries’ higher possible upside, analysts clearly believe Trinity Industries is more favorable than Gencor Industries.
Volatility and Risk
Insider & Institutional Ownership
86.6% of Trinity Industries shares are owned by institutional investors. 30.4% of Gencor Industries shares are owned by company insiders. Comparatively, 2.1% of Trinity Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Gencor Industries and Trinity Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gencor Industries | 14.33% | 8.60% | 8.01% |
| Trinity Industries | 16.62% | 18.51% | 2.56% |
Earnings & Valuation
This table compares Gencor Industries and Trinity Industries”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gencor Industries | $110.01 million | 2.40 | $14.67 million | $1.16 | 15.50 |
| Trinity Industries | $2.04 billion | 1.00 | $253.10 million | $4.15 | 6.18 |
Trinity Industries has higher revenue and earnings than Gencor Industries. Trinity Industries is trading at a lower price-to-earnings ratio than Gencor Industries, indicating that it is currently the more affordable of the two stocks.
Summary
Trinity Industries beats Gencor Industries on 8 of the 15 factors compared between the two stocks.
About Gencor Industries
Gencor Industries, Inc., together with its subsidiaries, designs, manufactures, and sells heavy machinery used in the production of highway construction materials and environmental control equipment. It offers hot-mix asphalt plants to produce asphalt paving materials; related asphalt plant equipment, including hot-mix storage silos, fabric filtration systems, cold feed bins, and other plant components; and a range of mobile batch plants. The company also provides combustion systems that transform solid, liquid, or gaseous fuels into usable energy, or burn multiple fuels in asphalt and aggregate drying industries; and combustion systems for rotary dryers, kilns, fume and liquid incinerators, and fuel heaters, as well as industrial incinerators. In addition, it offers thermal fluid heat transfer systems that transfer heat for storage, heating, and pumping viscous materials, such as asphalt, chemicals, heavy oils, etc. in various industrial and petrochemical applications; specialty storage tanks for various industrial uses; and asphalt pavers under the Blaw-Knox brand. The company sells its products primarily to the highway construction industry through its sales representatives, and independent dealers and agents worldwide. The company was formerly known as Mechtron International Corporation and changed its name to Gencor Industries, Inc. in 1987. Gencor Industries, Inc. was founded in 1894 and is based in Orlando, Florida.
About Trinity Industries
Trinity Industries, Inc. provides rail transportation products and services under the TrinityRail name in North America. It operates in two segments, Railcar Leasing and Management Services Group, and Rail Products Group. The Railcar Leasing and Management Services Group segment leases freight and tank railcars; originates and manages railcar leases for third-party investors; and provides fleet maintenance and management services. As of December 31, 2023, it had a fleet of 109,295 railcars. This segment serves industrial shipper and railroad companies operating in agriculture, construction and metals, consumer products, energy, and refined products and chemicals markets. The Rail Products Group segment manufactures freight and tank railcars for transporting various liquids, gases, and dry cargo; and offers railcar maintenance and modification services. This segment serves railroads, leasing companies, and industrial shippers of products in the agriculture, construction and metals, consumer products, energy, and refined products and chemicals markets. It sells or leases products and services through its own sales personnel and independent sales representatives. The company was incorporated in 1933 and is headquartered in Dallas, Texas.
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