Critical Survey: AZZ (NYSE:AZZ) and Northern Technologies International (NASDAQ:NTIC)

Northern Technologies International (NASDAQ:NTICGet Rating) and AZZ (NYSE:AZZGet Rating) are both small-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Northern Technologies International 3.07% 4.18% 3.36%
AZZ -2.46% 15.04% 5.30%

Volatility & Risk

Northern Technologies International has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, AZZ has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.

Insider & Institutional Ownership

34.4% of Northern Technologies International shares are owned by institutional investors. Comparatively, 88.5% of AZZ shares are owned by institutional investors. 22.0% of Northern Technologies International shares are owned by insiders. Comparatively, 1.7% of AZZ shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for Northern Technologies International and AZZ, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northern Technologies International 0 0 0 0 N/A
AZZ 0 1 1 0 2.50

Northern Technologies International presently has a consensus price target of $21.00, indicating a potential upside of 64.71%. AZZ has a consensus price target of $48.50, indicating a potential upside of 15.56%. Given Northern Technologies International’s higher probable upside, equities research analysts plainly believe Northern Technologies International is more favorable than AZZ.

Dividends

Northern Technologies International pays an annual dividend of $0.28 per share and has a dividend yield of 2.2%. AZZ pays an annual dividend of $0.68 per share and has a dividend yield of 1.6%. 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. AZZ pays out -64.8% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Northern Technologies International and AZZ’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Northern Technologies International $74.16 million 1.61 $6.32 million $0.25 51.00
AZZ $902.66 million 1.16 $84.02 million ($1.05) -39.97

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.

Summary

AZZ beats Northern Technologies International on 8 of the 15 factors compared between the two stocks.

About Northern Technologies International

(Get Rating)

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.

About AZZ

(Get Rating)

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.

Receive News & Ratings for Northern Technologies International Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Northern Technologies International and related companies with MarketBeat.com's FREE daily email newsletter.