AZZ (NYSE:AZZ – Get Rating) and XPEL (NASDAQ:XPEL – Get Rating) are both industrial products companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.
Analyst Ratings
This is a summary of recent ratings for AZZ and XPEL, as reported by MarketBeat.com.
Get AZZ alerts:| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AZZ | 0 | 1 | 1 | 0 | 2.50 |
| XPEL | 0 | 0 | 1 | 0 | 3.00 |
AZZ presently has a consensus price target of $48.50, indicating a potential upside of 13.98%. XPEL has a consensus price target of $89.00, indicating a potential upside of 14.06%. Given XPEL's stronger consensus rating and higher probable upside, analysts plainly believe XPEL is more favorable than AZZ.
Volatility and Risk
AZZ has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, XPEL has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500.Profitability
This table compares AZZ and XPEL's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AZZ | -2.46% | 15.04% | 5.30% |
| XPEL | 12.43% | 40.61% | 22.06% |
Earnings and Valuation
This table compares AZZ and XPEL's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AZZ | $1.49 billion | 0.71 | $84.02 million | ($1.05) | -40.52 |
| XPEL | $259.26 million | 8.31 | $31.57 million | $1.41 | 55.34 |
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 & Institutional Ownership
88.5% of AZZ shares are held by institutional investors. Comparatively, 59.5% of XPEL shares are held by institutional investors. 1.7% of AZZ shares are held by company insiders. Comparatively, 22.6% of XPEL shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
XPEL beats AZZ on 10 of the 13 factors compared between the two stocks.
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.
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.
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