Carrier Global (NYSE:CARR) versus AZZ (NYSE:AZZ) Head to Head Survey

AZZ (NYSE:AZZ) and Carrier Global (NYSE:CARR) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings.

Profitability

This table compares AZZ and Carrier Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AZZ	11.83%	14.18%	8.48%
Carrier Global	5.52%	14.68%	5.51%

Risk & Volatility

AZZ has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Carrier Global has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.

Institutional & Insider Ownership

90.9% of AZZ shares are owned by institutional investors. Comparatively, 91.0% of Carrier Global shares are owned by institutional investors. 1.7% of AZZ shares are owned by insiders. Comparatively, 6.5% of Carrier Global shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

AZZ pays an annual dividend of $0.96 per share and has a dividend yield of 0.7%. Carrier Global pays an annual dividend of $0.96 per share and has a dividend yield of 1.7%. AZZ pays out 14.6% of its earnings in the form of a dividend. Carrier Global pays out 66.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Carrier Global has raised its dividend for 4 consecutive years. Carrier Global is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares AZZ and Carrier Global”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AZZ	$1.65 billion	2.49	$317.26 million	$6.56	20.83
Carrier Global	$21.75 billion	2.12	$1.48 billion	$1.44	38.77

Carrier Global has higher revenue and earnings than AZZ. AZZ is trading at a lower price-to-earnings ratio than Carrier Global, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and target prices for AZZ and Carrier Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AZZ	0	2	4	0	2.67
Carrier Global	0	9	12	0	2.57

AZZ presently has a consensus target price of $155.25, indicating a potential upside of 13.61%. Carrier Global has a consensus target price of $72.27, indicating a potential upside of 29.44%. Given Carrier Global’s higher possible upside, analysts clearly believe Carrier Global is more favorable than AZZ.

Summary

Carrier Global beats AZZ on 11 of the 17 factors compared between the two stocks.

About AZZ

AZZ Inc. provides hot-dip galvanizing and coil coating solutions in North America. It offers metal finishing solutions for corrosion protection, including hot-dip galvanizing, spin galvanizing, powder coating, anodizing, and plating to steel fabrication and other industries, as well as to fabricators or manufacturers that provide services to the transmission and distribution, bridge and highway, petrochemical, and general industrial markets; and original equipment manufacturers. It also provides 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; container; transportation; and other end markets. The company was incorporated in 1956 and is headquartered in Fort Worth, Texas.

About Carrier Global

Carrier Global Corporation provides heating, ventilating, and air conditioning (HVAC), refrigeration, fire, security, and building automation technologies in the United States, Europe, the Asia Pacific, and internationally. It operates through three segments: HVAC, Refrigeration, and Fire & Security. The HVAC segment provides products, controls, services, and solutions to meet the heating, cooling, and ventilation needs of residential and commercial customers. Its products include air conditioners, heating systems, heat pumps, controls, and aftermarket components, as well as aftermarket repair and maintenance services and building automation solutions. The Refrigeration segment offers transport refrigeration and monitoring products and services, as well as digital solutions for trucks, trailers, shipping containers, intermodal applications, food retail, and warehouse cooling; and commercial refrigeration solutions, such as refrigerated cabinets, freezers, systems, and controls. The Fire & Security segment provides various residential, commercial, and industrial technologies, including fire, flame, gas, smoke, and carbon monoxide detection; portable fire extinguishers; fire suppression systems; intruder alarms; access control systems; video management systems; and electronic controls. This segment also offers fire and security service, such as audit, design, installation, and system integration, as well as aftermarket maintenance and repair and monitoring services. It offers its products under the Autronica, Det-Tronics, Edwards, Aritech, Fireye, GST, Kidde, LenelS2, Marioff, Onity, and Supra; Carrier, Toshiba, Automated Logic, Bryant, CIAT, Day & Night, Heil, NORESCO, and Riello; and Carrier Commercial Refrigeration, Carrier Transicold, and Sensitech brands. Carrier Global Corporation was incorporated in 2019 and is headquartered in Palm Beach Gardens, Florida.