AZZ (NYSE:AZZ – Get Rating) and Northern Technologies International (NASDAQ:NTIC – Get Rating) are both small-cap industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.
Volatility and Risk
AZZ has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Northern Technologies International has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.
AZZ pays an annual dividend of $0.68 per share and has a dividend yield of 1.6%. Northern Technologies International pays an annual dividend of $0.28 per share and has a dividend yield of 2.2%. AZZ pays out -64.8% of its earnings in the form of a dividend. Northern Technologies International pays out 112.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
|Net Margins||Return on Equity||Return on Assets|
|Northern Technologies International||3.07%||4.18%||3.36%|
Valuation and Earnings
This table compares AZZ and Northern Technologies International’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AZZ||$902.66 million||1.16||$84.02 million||($1.05)||-39.97|
|Northern Technologies International||$74.16 million||1.61||$6.32 million||$0.25||51.00|
AZZ has higher revenue and earnings than Northern Technologies International. AZZ is trading at a lower price-to-earnings ratio than Northern Technologies International, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
88.5% of AZZ shares are owned by institutional investors. Comparatively, 34.4% of Northern Technologies International shares are owned by institutional investors. 1.7% of AZZ shares are owned by insiders. Comparatively, 22.0% of Northern Technologies International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent recommendations for AZZ and Northern Technologies International, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Northern Technologies International||0||0||0||0||N/A|
AZZ currently has a consensus price target of $48.50, indicating a potential upside of 15.56%. Northern Technologies International has a consensus price target of $21.00, indicating a potential upside of 64.71%. Given Northern Technologies International’s higher probable upside, analysts plainly believe Northern Technologies International is more favorable than AZZ.
AZZ beats Northern Technologies International on 8 of the 15 factors compared between the two stocks.
AZZ Inc. offers galvanizing and metal coating solutions, welding solutions, specialty electrical equipment, and engineered services to the power generation, transmission, distribution, refining, and industrial markets in the United States and internationally. The company operates through two segments, Infrastructure Solutions and Metal Coatings. The Metal Coatings segment offers metal finishing solutions for corrosion protection, including hot-dip galvanizing, spin galvanizing, powder coating, anodizing, and plating to the steel fabrication and other industries. It serves fabricators or manufacturers that provide services to the electrical and telecommunications, bridge and highway, petrochemical, and general industrial markets, as well as original equipment manufacturers. The Infrastructure Solutions segment provides products and services to support industrial and electrical applications. It offers custom switchgear, electrical enclosures, medium and high voltage bus ducts, explosion proof and hazardous duty lighting, and tubular products, as well as solutions and engineering resources to multi-national companies. This segment sells its products through internal sales force, manufacturers' representatives, distributors, and agents. The company was incorporated in 1956 and is headquartered in Fort Worth, Texas.
About Northern Technologies International
Northern Technologies International Corp. engages in the development and market of proprietary environmentally beneficial products and technical services. It operates through the Natur-Tec and Zerust segments. The Natur-Tec segment manufactures bio-degradable and bio-based plastics for industrial and consumer applications. The Zerust segment provides corrosion mitigation solutions and services to oil, gas and chemical processing applications. The company was founded in 1970 and is headquartered in Circle Pines, MN.
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