GrafTech International (NYSE: GTI) and AZZ (NYSE:AZZ) are both small-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitabiliy.

Institutional & Insider Ownership

86.5% of AZZ shares are owned by institutional investors. 0.0% of AZZ shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares GrafTech International and AZZ’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GrafTech International -13.82% -9.99% -5.32%
AZZ 7.09% 12.68% 6.54%

Dividends

AZZ pays an annual dividend of $0.68 per share and has a dividend yield of 1.2%. GrafTech International does not pay a dividend. AZZ pays out 29.2% of its earnings in the form of a dividend. AZZ has raised its dividend for 3 consecutive years.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for GrafTech International and AZZ, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GrafTech International 0 0 0 0 N/A
AZZ 0 2 0 0 2.00

AZZ has a consensus target price of $57.50, indicating a potential upside of 0.88%. Given AZZ’s higher probable upside, analysts clearly believe AZZ is more favorable than GrafTech International.

Earnings & Valuation

This table compares GrafTech International and AZZ’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
GrafTech International N/A N/A N/A N/A N/A
AZZ $858.93 million 1.73 $156.72 million $2.33 24.46

AZZ has higher revenue and earnings than GrafTech International.

Summary

AZZ beats GrafTech International on 9 of the 10 factors compared between the two stocks.

About GrafTech International

GrafTech International Ltd. (GTI) is a manufacturer of graphite electrodes, products essential to the production of electric arc furnace (EAF) steel and other ferrous and nonferrous metals. The Company produces needle coke products, which are the primary raw material needed in the manufacture of graphite electrodes. The Company manufactures carbon, graphite and semi-graphite refractory products, which protect the walls of blast furnaces and submerged arc furnaces. The Company’s operating segments include: Industrial Materials, which include graphite electrodes, refractory products and needle coke products, and Engineered Solutions, which includes advanced graphite materials, advanced composite materials, advanced electronics technologies and advanced materials. The Company has seven product categories: graphite electrodes, refractory products, needle coke products, advanced graphite materials, advanced composite materials, advanced electronics technologies and advanced materials.

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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