Seek Returns logo

AZZ vs. CTAS: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at AZZ and CTAS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

CTAS’s market capitalization of 88.57 billion USD is significantly greater than AZZ’s 2.98 billion USD, highlighting its more substantial market valuation.

With betas of 1.25 for AZZ and 1.06 for CTAS, both stocks show similar sensitivity to overall market movements.

SymbolAZZCTAS
Company NameAZZ Inc.Cintas Corporation
CountryUSUS
SectorIndustrialsIndustrials
IndustryManufacturing - Metal FabricationSpecialty Business Services
CEOThomas E. FergusonTodd M. Schneider
Price99.62 USD219.36 USD
Market Cap2.98 billion USD88.57 billion USD
Beta1.251.06
ExchangeNYSENASDAQ
IPO DateMarch 17, 1980August 19, 1983
ADRNoNo

Historical Performance

This chart compares the performance of AZZ and CTAS by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

AZZ vs. CTAS: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AZZ

12.75%

Manufacturing - Metal Fabrication Industry

Max
23.40%
Q3
15.08%
Median
9.30%
Q1
2.46%
Min
-0.79%

AZZ’s Return on Equity of 12.75% is on par with the norm for the Manufacturing - Metal Fabrication industry, indicating its profitability relative to shareholder equity is typical for the sector.

CTAS

41.30%

Specialty Business Services Industry

Max
30.24%
Q3
17.20%
Median
7.32%
Q1
4.37%
Min
-13.44%

CTAS’s Return on Equity of 41.30% is exceptionally high, placing it well beyond the typical range for the Specialty Business Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

AZZ vs. CTAS: A comparison of their ROE against their respective Manufacturing - Metal Fabrication and Specialty Business Services industry benchmarks.

Return on Invested Capital

AZZ

8.86%

Manufacturing - Metal Fabrication Industry

Max
21.57%
Q3
14.50%
Median
8.86%
Q1
5.72%
Min
1.14%

AZZ’s Return on Invested Capital of 8.86% is in line with the norm for the Manufacturing - Metal Fabrication industry, reflecting a standard level of efficiency in generating profits from its capital base.

CTAS

22.69%

Specialty Business Services Industry

Max
22.69%
Q3
10.02%
Median
5.30%
Q1
1.55%
Min
-1.58%

In the upper quartile for the Specialty Business Services industry, CTAS’s Return on Invested Capital of 22.69% signifies a highly effective use of its capital to generate profits when compared to its peers.

AZZ vs. CTAS: A comparison of their ROIC against their respective Manufacturing - Metal Fabrication and Specialty Business Services industry benchmarks.

Net Profit Margin

AZZ

8.17%

Manufacturing - Metal Fabrication Industry

Max
15.92%
Q3
8.93%
Median
6.65%
Q1
2.99%
Min
-2.03%

AZZ’s Net Profit Margin of 8.17% is aligned with the median group of its peers in the Manufacturing - Metal Fabrication industry. This indicates its ability to convert revenue into profit is typical for the sector.

CTAS

17.53%

Specialty Business Services Industry

Max
17.53%
Q3
11.60%
Median
5.65%
Q1
1.65%
Min
-5.21%

A Net Profit Margin of 17.53% places CTAS in the upper quartile for the Specialty Business Services industry, signifying strong profitability and more effective cost management than most of its peers.

AZZ vs. CTAS: A comparison of their Net Profit Margin against their respective Manufacturing - Metal Fabrication and Specialty Business Services industry benchmarks.

Operating Profit Margin

AZZ

14.98%

Manufacturing - Metal Fabrication Industry

Max
21.93%
Q3
16.54%
Median
9.11%
Q1
3.53%
Min
0.65%

AZZ’s Operating Profit Margin of 14.98% is around the midpoint for the Manufacturing - Metal Fabrication industry, indicating that its efficiency in managing core business operations is typical for the sector.

CTAS

22.77%

Specialty Business Services Industry

Max
29.40%
Q3
16.52%
Median
5.78%
Q1
1.54%
Min
-5.17%

An Operating Profit Margin of 22.77% places CTAS in the upper quartile for the Specialty Business Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AZZ vs. CTAS: A comparison of their Operating Margin against their respective Manufacturing - Metal Fabrication and Specialty Business Services industry benchmarks.

Profitability at a Glance

SymbolAZZCTAS
Return on Equity (TTM)12.75%41.30%
Return on Assets (TTM)5.78%18.50%
Return on Invested Capital (TTM)8.86%22.69%
Net Profit Margin (TTM)8.17%17.53%
Operating Profit Margin (TTM)14.98%22.77%
Gross Profit Margin (TTM)24.25%49.51%

Financial Strength

Current Ratio

AZZ

1.70

Manufacturing - Metal Fabrication Industry

Max
4.29
Q3
3.75
Median
2.53
Q1
1.70
Min
0.23

AZZ’s Current Ratio of 1.70 aligns with the median group of the Manufacturing - Metal Fabrication industry, indicating that its short-term liquidity is in line with its sector peers.

CTAS

1.72

Specialty Business Services Industry

Max
2.21
Q3
1.84
Median
1.52
Q1
0.94
Min
0.26

CTAS’s Current Ratio of 1.72 aligns with the median group of the Specialty Business Services industry, indicating that its short-term liquidity is in line with its sector peers.

AZZ vs. CTAS: A comparison of their Current Ratio against their respective Manufacturing - Metal Fabrication and Specialty Business Services industry benchmarks.

Debt-to-Equity Ratio

AZZ

0.84

Manufacturing - Metal Fabrication Industry

Max
1.08
Q3
0.66
Median
0.34
Q1
0.06
Min
0.00

AZZ’s leverage is in the upper quartile of the Manufacturing - Metal Fabrication industry, with a Debt-to-Equity Ratio of 0.84. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

CTAS

0.59

Specialty Business Services Industry

Max
1.02
Q3
0.93
Median
0.62
Q1
0.22
Min
0.03

CTAS’s Debt-to-Equity Ratio of 0.59 is typical for the Specialty Business Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AZZ vs. CTAS: A comparison of their D/E Ratio against their respective Manufacturing - Metal Fabrication and Specialty Business Services industry benchmarks.

Interest Coverage Ratio

AZZ

2.91

Manufacturing - Metal Fabrication Industry

Max
10.78
Q3
10.60
Median
7.36
Q1
3.87
Min
0.89

In the lower quartile for the Manufacturing - Metal Fabrication industry, AZZ’s Interest Coverage Ratio of 2.91 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

CTAS

22.84

Specialty Business Services Industry

Max
15.61
Q3
6.91
Median
3.29
Q1
0.04
Min
-8.58

With an Interest Coverage Ratio of 22.84, CTAS demonstrates a superior capacity to service its debt, placing it well above the typical range for the Specialty Business Services industry. This stems from either robust earnings or a conservative debt load.

AZZ vs. CTAS: A comparison of their Interest Coverage against their respective Manufacturing - Metal Fabrication and Specialty Business Services industry benchmarks.

Financial Strength at a Glance

SymbolAZZCTAS
Current Ratio (TTM)1.701.72
Quick Ratio (TTM)1.191.50
Debt-to-Equity Ratio (TTM)0.840.59
Debt-to-Asset Ratio (TTM)0.390.28
Net Debt-to-EBITDA Ratio (TTM)2.630.86
Interest Coverage Ratio (TTM)2.9122.84

Growth

The following charts compare key year-over-year (YoY) growth metrics for AZZ and CTAS. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AZZ vs. CTAS: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AZZ vs. CTAS: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AZZ vs. CTAS: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AZZ

0.68%

Manufacturing - Metal Fabrication Industry

Max
3.39%
Q3
1.07%
Median
0.27%
Q1
0.00%
Min
0.00%

AZZ’s Dividend Yield of 0.68% is consistent with its peers in the Manufacturing - Metal Fabrication industry, providing a dividend return that is standard for its sector.

CTAS

0.98%

Specialty Business Services Industry

Max
4.40%
Q3
1.37%
Median
0.74%
Q1
0.00%
Min
0.00%

CTAS’s Dividend Yield of 0.98% is consistent with its peers in the Specialty Business Services industry, providing a dividend return that is standard for its sector.

AZZ vs. CTAS: A comparison of their Dividend Yield against their respective Manufacturing - Metal Fabrication and Specialty Business Services industry benchmarks.

Dividend Payout Ratio

AZZ

23.11%

Manufacturing - Metal Fabrication Industry

Max
96.53%
Q3
19.10%
Median
6.69%
Q1
0.00%
Min
0.00%

AZZ’s Dividend Payout Ratio of 23.11% is in the upper quartile for the Manufacturing - Metal Fabrication industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

CTAS

33.25%

Specialty Business Services Industry

Max
79.38%
Q3
51.62%
Median
23.75%
Q1
1.08%
Min
0.00%

CTAS’s Dividend Payout Ratio of 33.25% is within the typical range for the Specialty Business Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AZZ vs. CTAS: A comparison of their Payout Ratio against their respective Manufacturing - Metal Fabrication and Specialty Business Services industry benchmarks.

Dividend at a Glance

SymbolAZZCTAS
Dividend Yield (TTM)0.68%0.98%
Dividend Payout Ratio (TTM)23.11%33.25%

Valuation

Price-to-Earnings Ratio

AZZ

23.12

Manufacturing - Metal Fabrication Industry

Max
38.69
Q3
32.70
Median
28.84
Q1
16.47
Min
12.59

AZZ’s P/E Ratio of 23.12 is within the middle range for the Manufacturing - Metal Fabrication industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

CTAS

49.81

Specialty Business Services Industry

Max
52.23
Q3
42.83
Median
32.04
Q1
16.00
Min
2.24

A P/E Ratio of 49.81 places CTAS in the upper quartile for the Specialty Business Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

AZZ vs. CTAS: A comparison of their P/E Ratio against their respective Manufacturing - Metal Fabrication and Specialty Business Services industry benchmarks.

Forward P/E to Growth Ratio

AZZ

2.25

Manufacturing - Metal Fabrication Industry

Max
4.49
Q3
3.46
Median
2.32
Q1
1.70
Min
1.00

The Forward PEG Ratio is often not a primary valuation metric in the Manufacturing - Metal Fabrication industry.

CTAS

4.88

Specialty Business Services Industry

Max
4.93
Q3
3.34
Median
2.19
Q1
0.14
Min
0.06

A Forward PEG Ratio of 4.88 places CTAS in the upper quartile for the Specialty Business Services industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.

AZZ vs. CTAS: A comparison of their Forward PEG Ratio against their respective Manufacturing - Metal Fabrication and Specialty Business Services industry benchmarks.

Price-to-Sales Ratio

AZZ

1.89

Manufacturing - Metal Fabrication Industry

Max
4.70
Q3
2.74
Median
1.93
Q1
0.83
Min
0.16

AZZ’s P/S Ratio of 1.89 aligns with the market consensus for the Manufacturing - Metal Fabrication industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

CTAS

8.65

Specialty Business Services Industry

Max
6.26
Q3
3.60
Median
1.90
Q1
0.73
Min
0.34

With a P/S Ratio of 8.65, CTAS trades at a valuation that eclipses even the highest in the Specialty Business Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

AZZ vs. CTAS: A comparison of their P/S Ratio against their respective Manufacturing - Metal Fabrication and Specialty Business Services industry benchmarks.

Price-to-Book Ratio

AZZ

2.85

Manufacturing - Metal Fabrication Industry

Max
6.57
Q3
3.47
Median
2.44
Q1
1.33
Min
0.88

AZZ’s P/B Ratio of 2.85 is within the conventional range for the Manufacturing - Metal Fabrication industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

CTAS

19.29

Specialty Business Services Industry

Max
3.69
Q3
3.69
Median
2.13
Q1
1.55
Min
0.59

The P/B Ratio is often not a primary valuation metric for the Specialty Business Services industry.

AZZ vs. CTAS: A comparison of their P/B Ratio against their respective Manufacturing - Metal Fabrication and Specialty Business Services industry benchmarks.

Valuation at a Glance

SymbolAZZCTAS
Price-to-Earnings Ratio (P/E, TTM)23.1249.81
Forward PEG Ratio (TTM)2.254.88
Price-to-Sales Ratio (P/S, TTM)1.898.65
Price-to-Book Ratio (P/B, TTM)2.8519.29
Price-to-Free Cash Flow Ratio (P/FCF, TTM)22.2648.05
EV-to-EBITDA (TTM)11.5531.82
EV-to-Sales (TTM)2.458.90