AZEK (NYSE:AZEK) vs. Comfort Systems USA (NYSE:FIX) Head-To-Head Contrast

AZEK (NYSE:AZEK) and Comfort Systems USA (NYSE:FIX) are both construction companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Earnings and Valuation

This table compares AZEK and Comfort Systems USA”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AZEK	$1.44 billion	5.11	$153.38 million	$1.02	50.18
Comfort Systems USA	$7.03 billion	2.50	$522.43 million	$16.67	29.91

Comfort Systems USA has higher revenue and earnings than AZEK. Comfort Systems USA is trading at a lower price-to-earnings ratio than AZEK, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for AZEK and Comfort Systems USA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AZEK	0	10	7	0	2.41
Comfort Systems USA	0	0	5	0	3.00

AZEK currently has a consensus target price of $53.93, indicating a potential upside of 5.38%. Comfort Systems USA has a consensus target price of $525.80, indicating a potential upside of 5.45%. Given Comfort Systems USA’s stronger consensus rating and higher possible upside, analysts clearly believe Comfort Systems USA is more favorable than AZEK.

Volatility & Risk

AZEK has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500. Comparatively, Comfort Systems USA has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Insider & Institutional Ownership

97.4% of AZEK shares are owned by institutional investors. Comparatively, 96.5% of Comfort Systems USA shares are owned by institutional investors. 3.2% of AZEK shares are owned by company insiders. Comparatively, 1.6% of Comfort Systems USA 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.

Profitability

This table compares AZEK and Comfort Systems USA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AZEK	9.92%	13.87%	8.63%
Comfort Systems USA	8.13%	36.35%	13.30%

About AZEK

The AZEK Company Inc. engages in the design, manufacturing, and selling of building products for residential, commercial, and industrial markets in the United States and Canada. It operates through two segments: Residential and Commercial. The Residential segment designs and manufactures engineered outdoor living products, such as decking, railing, trim and molding, siding and cladding, pergolas and cabanas, and accessories under the TimberTech, AZEK Exteriors, VERSATEX, ULTRALOX, StruXure, and INTEX brands. The Commercial segment offers bathroom partitions, shower and dressing stalls, lockers and other storage solutions, and engineered plastic sheet products under the Aria, Eclipse, Hiny Hiders, TuffTec, and Duralife brands. This segment also offers bathroom partitions, shower and dressing stalls, lockers, storage solutions, extruded plastic sheet, and non-fabricated products under the Aria, Eclipse, Hiny Hiders, TuffTec, and Duralife brands. The company was formerly known as Delaware corporation and changed its name to The AZEK Company Inc. in June 2020. The AZEK Company Inc. was incorporated in 2013 and is headquartered in Chicago, Illinois.

About Comfort Systems USA

Comfort Systems USA, Inc., together with its subsidiaries, provides mechanical and electrical installation, renovation, maintenance, repair, and replacement services for the mechanical and electrical services industry in the United States. It operates through two segments, Mechanical and Electrical. The company offers heating, ventilation, and air conditioning systems, as well as plumbing, electrical, piping and controls, off-site construction, monitoring, and fire protection. It also engages in the design, engineering, integration, installation, and start-up of mechanical, electrical, and plumbing (MEP) and related systems in new buildings; and renovation, expansion, maintenance, monitoring, repair, and replacement of MEP systems in existing buildings. In addition, the company provides remote monitoring of power usage, temperature, pressure, humidity and air flow for MEP and other building systems. It serves building owners and developers, general contractors, architects, consulting engineers, and property managers in the commercial, industrial, and institutional MEP markets. Comfort Systems USA, Inc. was founded in 1917 and is headquartered in Houston, Texas.