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Critical Analysis: XPEL (NASDAQ:XPEL) Vs. AZZ (NYSE:AZZ)

Defense World ·  Feb 4, 2023 01:31

XPEL (NASDAQ:XPEL – Get Rating) and AZZ (NYSE:AZZ – Get Rating) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.

Analyst Ratings

This is a summary of current ratings and target prices for XPEL and AZZ, as reported by MarketBeat.

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Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
XPEL 0 0 1 0 3.00
AZZ 0 1 1 0 2.50

XPEL presently has a consensus price target of $89.00, indicating a potential upside of 13.39%. AZZ has a consensus price target of $48.50, indicating a potential upside of 11.91%. Given XPEL's stronger consensus rating and higher probable upside, equities analysts clearly believe XPEL is more favorable than AZZ.

Volatility & Risk

XPEL has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500. Comparatively, AZZ has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.

Profitability

This table compares XPEL and AZZ's net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
XPEL 12.43% 40.61% 22.06%
AZZ -2.46% 15.04% 5.30%

Earnings and Valuation

This table compares XPEL and AZZ's revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
XPEL $259.26 million 8.36 $31.57 million $1.41 55.67
AZZ $902.66 million 1.20 $84.02 million ($1.05) -41.28

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

Insider and Institutional Ownership

59.5% of XPEL shares are held by institutional investors. Comparatively, 88.5% of AZZ shares are held by institutional investors. 22.6% of XPEL shares are held by insiders. Comparatively, 1.7% of AZZ shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

XPEL beats AZZ on 10 of the 13 factors compared between the two stocks.

About XPEL

(Get Rating)

XPEL, Inc. engages in the manufacture and distribution of automotive products. It offers paint protection, aumototive, and flat glass window films, and plotters. The company was founded on October 14, 2003 and is headquartered in San Antonio, TX.

About AZZ

(Get Rating)

AZZ Inc. engages in the provision of hot-dip galvanizing and coil coating solutions to a broad range of end-markets. It operates through the following segments: AZZ Metal Coatings, AZZ Precoat Metals, and AZZ Infrastructure Solutions. The AZZ Metal Coatings segment provides hot-dip galvanizing, spin galvanizing, powder coating, anodizing and plating, and other metal coating applications to the steel fabrication and other industries through facilities located throughout the United States and Canada. The AZZ Precoat Metals segment consists of aesthetic and corrosion protective coatings and related value-added services for steel and aluminum coil, primarily serving the construction, appliance, heating, ventilation, and air conditioning (HVAC), container, transportation and other end markets in the United States. The AZZ Infrastructure Solutions segment consists of the company's investment in and equity in earnings of the AIS JV, which provides specialized products and services designed to support primarily industrial and electrical applications. The company was founded in 1956 and is headquartered in Fort Worth, TX.

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