AZZ (NYSE: AZZ) and Atkore International Group (NYSE:ATKR) are both small-cap industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
AZZ 6.27% 9.65% 5.13%
Atkore International Group 5.21% 26.72% 7.33%

Risk and Volatility

AZZ has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, Atkore International Group has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Earnings & Valuation

This table compares AZZ and Atkore International Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
AZZ $858.93 million 1.35 $60.92 million $1.97 22.72
Atkore International Group $1.52 billion 0.82 $58.79 million $1.19 16.44

AZZ has higher revenue, but lower earnings than Atkore International Group. Atkore International Group is trading at a lower price-to-earnings ratio than AZZ, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

86.4% of AZZ shares are owned by institutional investors. Comparatively, 96.2% of Atkore International Group shares are owned by institutional investors. 0.0% of AZZ shares are owned by company insiders. Comparatively, 68.8% of Atkore International Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

AZZ pays an annual dividend of $0.68 per share and has a dividend yield of 1.5%. Atkore International Group does not pay a dividend. AZZ pays out 34.5% of its earnings in the form of a dividend. Atkore International Group has increased its dividend for 3 consecutive years.

Analyst Recommendations

This is a summary of current ratings and target prices for AZZ and Atkore International Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AZZ 0 1 0 0 2.00
Atkore International Group 0 0 3 0 3.00

AZZ currently has a consensus target price of $52.00, suggesting a potential upside of 16.20%. Atkore International Group has a consensus target price of $22.67, suggesting a potential upside of 15.88%. Given AZZ’s higher probable upside, equities research analysts plainly believe AZZ is more favorable than Atkore International Group.

Summary

Atkore International Group beats AZZ on 9 of the 17 factors compared between the two stocks.

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.

About Atkore International Group

Atkore International Group Inc. is a manufacturer of electrical raceway products. The Company’s products are primarily offered for non-residential construction and renovation markets, and mechanical products and solutions (MP&S) for the construction and industrial markets. The Company operates in two segments: Electrical Raceway and MP&S. Through the electrical raceway segment, it manufactures products that deploy, isolate and protect a structure’s electrical circuitry from the original power source to the final outlet. The Company’s electrical raceway segment products include electrical conduit, armored cable, cable trays, mounting systems and fittings. Through the MP&S segment, it provides products and services that frame, support and secure component parts in a range of structures, equipment and systems in electrical, industrial and construction applications. The Company’s MP&S segment products include metal framing products and in-line galvanized mechanical tube.

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