Reviewing Tecogen (TGEN) & Its Competitors

Tecogen (OTCMKTS:TGEN) is one of 219 publicly-traded companies in the “Electrical Equipment” industry, but how does it compare to its competitors? We will compare Tecogen to related businesses based on the strength of its earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.

Analyst Recommendations

This is a summary of recent ratings for Tecogen and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tecogen	0	1	1	0	2.50
Tecogen Competitors	2196	5213	7243	418	2.39

Tecogen currently has a consensus target price of $11.25, indicating a potential upside of 189.20%. As a group, “Electrical Equipment” companies have a potential upside of 20.57%. Given Tecogen’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Tecogen is more favorable than its competitors.

Volatility & Risk

Tecogen has a beta of 2.15, meaning that its share price is 115% more volatile than the S&P 500. Comparatively, Tecogen’s competitors have a beta of -19.50, meaning that their average share price is 2,050% less volatile than the S&P 500.

Valuation & Earnings

This table compares Tecogen and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tecogen	$26.13 million	-$4.60 million	-11.79
Tecogen Competitors	$2.34 billion	$132.29 million	24.95

Tecogen’s competitors have higher revenue and earnings than Tecogen. Tecogen is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Tecogen and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tecogen	-24.15%	-42.06%	-19.55%
Tecogen Competitors	-222.38%	-206.58%	-8.30%

Institutional & Insider Ownership

38.1% of shares of all “Electrical Equipment” companies are held by institutional investors. 12.0% of Tecogen shares are held by insiders. Comparatively, 15.3% of shares of all “Electrical Equipment” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Tecogen competitors beat Tecogen on 7 of the 13 factors compared.

Tecogen Company Profile

Tecogen Inc., together with its subsidiaries, designs, manufactures, markets, and maintains ultra-clean cogeneration products for multi-family residential, commercial, recreational, and industrial use primarily in the United States. It operates through three segments: Products, Services, and Energy Production. The Products segment designs, manufactures, and sells industrial and commercial cogeneration systems. The Services segment provides operation and maintenance services for products under long term service contracts. The Energy Production segment sells energy in the form of electricity, heat, hot water, and cooling to customers under long-term energy sales agreements. The company also offers natural gas-powered cogeneration systems for water and space heating, and/or air conditioning. Its product portfolio includes InVerde e+ and TecoPower cogeneration units for the supply electricity and hot water; Tecochill, an air-conditioning and refrigeration chillers, and hybrid-drive air-cooled and gas engine-driven chillers to produce chilled water and hot water; Tecofrost, a gas engine-driven refrigeration compressors to circulate refrigerant and provide hot water as a byproduct; and Ultera, an emissions control technology. In addition, the company provides long-term maintenance contracts, parts sales, and turnkey installation for products through a network of field service centers. It sells its products to healthcare, housing and hospitality, ice rink and low temperature, recreation facilities, industrial, indoor growing, and breweries markets through in-house marketing, as well as independent sales agents and representatives. Tecogen Inc. was incorporated in 2000 and is headquartered in Waltham, Massachusetts.