Analyzing AZZ (NYSE:AZZ) and Nano Magic (OTCMKTS:PENC)
AZZ (NYSE:AZZ – Get Rating) and Nano Magic (OTCMKTS:PENC – Get Rating) are both small-cap industrial products companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.
Institutional and Insider Ownership
88.5% of AZZ shares are owned by institutional investors. 1.7% of AZZ shares are owned by company insiders. Comparatively, 56.0% of Nano Magic shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares AZZ and Nano Magic’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% |
| Nano Magic | -14.10% | N/A | -24.11% |
Valuation and Earnings
This table compares AZZ and Nano Magic’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AZZ | $1.49 billion | 0.66 | $84.02 million | ($1.05) | -37.86 |
| Nano Magic | $4.33 million | 0.36 | -$50,000.00 | N/A | N/A |
AZZ has higher revenue and earnings than Nano Magic.
Analyst Ratings
This is a breakdown of recent ratings and target prices for AZZ and Nano Magic, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AZZ | 0 | 1 | 1 | 0 | 2.50 |
| Nano Magic | 0 | 0 | 0 | 0 | N/A |
AZZ currently has a consensus price target of $48.50, indicating a potential upside of 22.01%. Given AZZ’s higher probable upside, equities research analysts plainly believe AZZ is more favorable than Nano Magic.
Volatility and Risk
AZZ has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Nano Magic has a beta of -0.61, suggesting that its stock price is 161% less volatile than the S&P 500.
Summary
AZZ beats Nano Magic on 10 of the 11 factors compared between the two stocks.
About AZZ
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 Nano Magic
Nano Magic, Inc. engages in the development, marketing, and sale of consumer and industrial products enabled by nanotechnology. Its products include nano-layer coatings, nano-based cleaners, printable inks and pastes, and thermal management materials. It operates through the following segments: Product and Contract Services. The Contract Services segment focuses on the design and development services for future products and for government and private entities and sales of products developed for third parties. The Product segment develops, manufactures, and sells consumer and institutional products using nanotechnology. The company was founded in 2014 and is headquartered in Bloomfield Hills, MI.
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