Critical Survey: AZZ (AZZ) & Anixter International (NYSE:AXE)
AZZ (NYSE: AZZ) and Anixter International (NYSE:AXE) are both industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitabiliy, institutional ownership and dividends.
This is a summary of recent recommendations and price targets for AZZ and Anixter International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AZZ currently has a consensus price target of $56.00, indicating a potential upside of 11.78%. Anixter International has a consensus price target of $86.00, indicating a potential upside of 11.83%. Given Anixter International’s stronger consensus rating and higher possible upside, analysts plainly believe Anixter International is more favorable than AZZ.
This table compares AZZ and Anixter International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
AZZ has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500. Comparatively, Anixter International has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500.
Valuation & Earnings
This table compares AZZ and Anixter International’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|AZZ||$824.81 million||1.58||$143.90 million||$2.03||24.68|
|Anixter International||$7.75 billion||0.33||$382.00 million||$4.39||17.52|
Anixter International has higher revenue and earnings than AZZ. Anixter International is trading at a lower price-to-earnings ratio than AZZ, indicating that it is currently the more affordable of the two stocks.
AZZ pays an annual dividend of $0.68 per share and has a dividend yield of 1.4%. Anixter International does not pay a dividend. AZZ pays out 33.5% of its earnings in the form of a dividend. Anixter International has increased its dividend for 3 consecutive years.
Insider and Institutional Ownership
86.6% of AZZ shares are owned by institutional investors. Comparatively, 86.5% of Anixter International shares are owned by institutional investors. 0.0% of AZZ shares are owned by company insiders. Comparatively, 14.7% of Anixter International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Anixter International beats AZZ on 11 of the 17 factors compared between the two stocks.
AZZ Company Profile
AZZ Inc. is a provider of galvanizing services, welding solutions, specialty electrical equipment and engineered services to the power generation, transmission, distribution, refining and industrial markets. The Company operates through two segments: Energy segment and Galvanizing segment. Its Energy segment provides products and services designed to support industrial, nuclear and electrical applications. Its product offerings include custom switchgear, electrical enclosures, medium and high voltage bus ducts, explosion proof and hazardous duty lighting, nuclear safety-related equipment and tubular products. Its Galvanizing segment provides hot dip galvanizing to the steel fabrication industry through facilities located throughout the United States and Canada. It serves fabricators or manufacturers that provide services to the electrical and telecommunications, bridge and highway, petrochemical and general industrial markets and various original equipment manufacturers.
Anixter International Company Profile
Anixter International Inc. is engaged in the distribution of enterprise cabling and security solutions, electrical and electronic wire and cable products and utility power solutions. The Company operates through three segments: Network & Security Solutions (NSS), Electrical & Electronic Solutions (EES), and Utility Power Solutions (UPS). The NSS segment’s product portfolio includes access control, power, cable management, wireless, professional audio/video, voice and networking switches, and other ancillary products. The EES segment’s product portfolio includes electrical and electronic wire and cable, shipboard cable, support and supply products, low-voltage cable, instrumentation cable, industrial communication and control products, security cable, connectors, industrial Ethernet switches, and voice and data cable. The UPS segment supplies electrical transmission and distribution products, power plant maintenance, repair and operations supplies, and smart-grid products.
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