AZZ (AZZ) vs. Its Peers Financial Analysis

AZZ (NYSE: AZZ) is one of 47 publicly-traded companies in the “Electrical Components & Equipment” industry, but how does it compare to its rivals? We will compare AZZ to similar companies based on the strength of its risk, dividends, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Analyst Ratings

This is a summary of current recommendations and price targets for AZZ and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AZZ 0 1 0 0 2.00
AZZ Competitors 186 918 1197 6 2.44

AZZ currently has a consensus price target of $52.00, suggesting a potential upside of 11.11%. As a group, “Electrical Components & Equipment” companies have a potential upside of 4.05%. Given AZZ’s higher possible upside, equities research analysts plainly believe AZZ is more favorable than its rivals.

Profitability

This table compares AZZ and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AZZ 6.27% 9.65% 5.13%
AZZ Competitors -3.49% 5.81% 2.20%

Dividends

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.

Institutional and Insider Ownership

85.4% 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 insiders. Comparatively, 6.4% of shares of all “Electrical Components & Equipment” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & 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 rivals have a beta of 1.30, indicating that their average stock price is 30% more volatile than the S&P 500.

Earnings & Valuation

This table compares AZZ and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
AZZ $820.18 million $143.90 million 23.76
AZZ Competitors $1.86 billion $293.26 million -36.46

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

Summary

AZZ beats its rivals on 8 of the 15 factors compared.

About AZZ

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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