Financial Review: AZZ (AZZ) and Orbotech (ORBK)
AZZ (NYSE: AZZ) and Orbotech (NASDAQ:ORBK) are both industrial products companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, earnings, risk, valuation, institutional ownership and profitability.
Institutional & Insider Ownership
87.8% of AZZ shares are owned by institutional investors. Comparatively, 66.1% of Orbotech shares are owned by institutional investors. 0.0% of AZZ shares are owned by company insiders. Comparatively, 10.4% of Orbotech shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
AZZ pays an annual dividend of $0.68 per share and has a dividend yield of 1.5%. Orbotech does not pay a dividend. AZZ pays out 34.5% of its earnings in the form of a dividend. Orbotech has raised its dividend for 4 consecutive years.
This table compares AZZ and Orbotech’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for AZZ and Orbotech, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AZZ currently has a consensus price target of $52.00, indicating a potential upside of 15.81%. Orbotech has a consensus price target of $51.67, indicating a potential downside of 2.64%. Given AZZ’s higher probable upside, research analysts clearly believe AZZ is more favorable than Orbotech.
Valuation & Earnings
This table compares AZZ and Orbotech’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AZZ||$858.93 million||1.37||$60.92 million||$1.97||22.94|
|Orbotech||$806.40 million||3.15||$79.43 million||$2.10||25.26|
Orbotech has lower revenue, but higher earnings than AZZ. AZZ is trading at a lower price-to-earnings ratio than Orbotech, indicating that it is currently the more affordable of the two stocks.
Orbotech beats AZZ on 12 of the 16 factors compared between the two stocks.
AZZ Company Profile
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.
Orbotech Company Profile
Orbotech Ltd. is a supplier of yield-enhancing and process-enabling solutions for the manufacture of electronics products. The Company provides cutting-edge solutions for use in the manufacture of printed circuit boards (PCBs), flat panel displays (FPDs) and semiconductor devices (SDs). The Company’s segments include Production Solutions for the Electronics Industry, Solar Energy and Recognition Software. The Production Solutions for the Electronics Industry segment is engaged in the design, development, manufacture, marketing and service of yield-enhancing and process-enabling solutions for the manufacture of electronics products. The Solar Energy segment is engaged in the design, development, manufacture and marketing of solar photovoltaic energy systems that produce electricity directly from sunlight. The Recognition Software segment is engaged in the development and marketing of check processing and healthcare payment automation solutions.
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