AZZ (NYSE: AZZ) is one of 46 public companies in the “Electrical Components & Equipment” industry, but how does it weigh in compared to its competitors? We will compare AZZ to similar businesses based on the strength of its dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
AZZ $824.81 million $143.90 million 24.63
AZZ Competitors $1.91 billion $302.41 million -33.97

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.

Dividends

AZZ pays an annual dividend of $0.68 per share and has a dividend yield of 1.4%. AZZ pays out 33.5% of its earnings in the form of a dividend. As a group, “Electrical Components & Equipment” companies pay a dividend yield of 1.6% and pay out 45.5% of their earnings in the form of a dividend. AZZ has increased its dividend for 3 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
AZZ 6.44% 10.98% 5.77%
AZZ Competitors -3.11% 5.25% 2.19%

Institutional and Insider Ownership

85.8% of AZZ shares are held by institutional investors. Comparatively, 66.7% of shares of all “Electrical Components & Equipment” companies are held by institutional investors. 0.0% of AZZ shares are held by company insiders. Comparatively, 6.4% of shares of all “Electrical Components & Equipment” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

AZZ has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500. Comparatively, AZZ’s competitors have a beta of 1.29, meaning that their average share price is 29% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for AZZ and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AZZ 0 1 0 0 2.00
AZZ Competitors 256 1038 1227 12 2.39

AZZ currently has a consensus target price of $56.00, suggesting a potential upside of 12.00%. As a group, “Electrical Components & Equipment” companies have a potential upside of 4.23%. Given AZZ’s higher possible upside, research analysts clearly believe AZZ is more favorable than its competitors.

Summary

AZZ beats its competitors 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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