AZZ (AZZ) vs. Its Competitors Critical Analysis
AZZ (NYSE: AZZ) is one of 46 public companies in the “Electrical Components & Equipment” industry, but how does it contrast to its competitors? We will compare AZZ to related companies based on the strength of its valuation, dividends, profitability, analyst recommendations, earnings, risk and institutional ownership.
Risk and Volatility
AZZ has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, AZZ’s competitors have a beta of 1.30, indicating that their average stock price is 30% more volatile than the S&P 500.
This table compares AZZ and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares AZZ and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|AZZ||$820.18 million||$143.90 million||23.45|
|AZZ Competitors||$1.87 billion||$295.25 million||-36.99|
AZZ’s competitors have higher revenue and earnings than AZZ. AZZ is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
This is a summary of current ratings for AZZ and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AZZ presently has a consensus target price of $52.00, indicating a potential upside of 12.55%. As a group, “Electrical Components & Equipment” companies have a potential upside of 1.48%. Given AZZ’s higher possible upside, equities analysts clearly believe AZZ is more favorable than its competitors.
AZZ pays an annual dividend of $0.68 per share and has a dividend yield of 1.5%. AZZ pays out 34.5% of its earnings in the form of a dividend. As a group, “Electrical Components & Equipment” companies pay a dividend yield of 1.5% and pay out 44.4% of their earnings in the form of a dividend. AZZ has increased its dividend for 3 consecutive years.
Insider & Institutional Ownership
85.3% of AZZ shares are owned by institutional investors. Comparatively, 66.9% of shares of all “Electrical Components & Equipment” companies are owned by institutional investors. 0.0% of AZZ shares are owned by company insiders. Comparatively, 6.4% of shares of all “Electrical Components & Equipment” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
AZZ beats its competitors on 8 of the 15 factors compared.
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.
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