Critical Analysis: AZZ (AZZ) & Capstone Companies (CAPC)
AZZ (NYSE:AZZ) and Capstone Companies (OTCMKTS:CAPC) are both small-cap industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Valuation and Earnings
This table compares AZZ and Capstone Companies’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AZZ||$810.43 million||1.42||$45.16 million||$1.35||32.70|
|Capstone Companies||$36.75 million||0.20||$2.07 million||N/A||N/A|
This table compares AZZ and Capstone Companies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
AZZ has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, Capstone Companies has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for AZZ and Capstone Companies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AZZ presently has a consensus price target of $50.50, suggesting a potential upside of 14.38%. Given AZZ’s higher possible upside, equities research analysts plainly believe AZZ is more favorable than Capstone Companies.
AZZ pays an annual dividend of $0.68 per share and has a dividend yield of 1.5%. Capstone Companies does not pay a dividend. AZZ pays out 50.4% of its earnings in the form of a dividend. AZZ has raised its dividend for 4 consecutive years.
Institutional & Insider Ownership
89.7% of AZZ shares are owned by institutional investors. 0.0% of AZZ shares are owned by company insiders. Comparatively, 38.5% of Capstone Companies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
AZZ beats Capstone Companies on 12 of the 14 factors compared between the two stocks.
AZZ Company Profile
AZZ Inc. provides galvanizing and metal coating services, welding solutions, specialty electrical equipment, and highly engineered services to the power generation, transmission, distribution, refining, and industrial markets. The company operates through two segments, Energy Segment and Metal Coatings. The Energy segment provides specialized products and services designed to support industrial, nuclear, and electrical applications. This segment offers custom switchgear, electrical enclosures, medium and high voltage bus ducts, explosion proof and hazardous duty lighting, nuclear safety-related equipment, and tubular products to multi-national companies and small independent companies. This segment sells its products through manufacturers' representatives, distributors, agents, and internal sales force. The Metal Coatings segment offers hot dip galvanizing and other metal coating applications to the steel fabrication industry. This segment serves fabricators or manufacturers that provide services to the electrical and telecommunications, bridge and highway, petrochemical, and general industrial markets, as well as original equipment manufacturers. As of February 28, 2018, the company operated 45 metal coating plants located in various locations in the United States and Canada. AZZ Inc. was founded in 1956 and is headquartered in Fort Worth, Texas.
Capstone Companies Company Profile
Capstone Companies, Inc., through its subsidiaries, develops, markets, and sells consumer home light-emitting diode (LED) lighting products in North America and internationally. It offers wireless remote-controlled LED accent, LED under cabinet, LED solar patio, LED motion sensor, and LED wall utility lights, as well as LED gooseneck lanterns, CPC power failure bulbs, and wireless remote-control outlets. The company markets its products under the CAPI, Capstone Lighting, and Duracell brand names, as well as under the Hoover Home LED licensed brand through a network of direct independent sales force, retailers, and distributors. It sells its products through retail warehouse clubs, hardware centers, and e-commerce Websites. The company was formerly known as CHDT Corporation and changed its name to Capstone Companies, Inc. in June 2012. Capstone Companies, Inc. was incorporated in 1986 and is headquartered in Deerfield Beach, Florida.
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