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All generic formulas must meet the same strict safety, nutrition, and manufacturing guidelines as the priciest products on the market. So, no, they're not less nutritious.
The reason they're less expensive is that the manufacturers of generic formula don't spend millions of dollars on research or on marketing, and they don't give away free samples the way some other formula companies do. They simply sell a product that meets the standards set by the United States Food and Drug Administration.
Interestingly, Wyeth Nutrition, a division of an enormous pharmaceutical company, makes the majority of "generic" or store-brand formulas on the market. Before moving in to the generic category, Wyeth Nutrition marketed their own brand-name formula, SMA.
Watch a pediatrician demonstrate how to make baby formula and store it safely.