Reviewing AZZ (NYSE:AZZ) and Plug Power (NASDAQ:PLUG)

Plug Power (NASDAQ:PLUG) and AZZ (NYSE:AZZ) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Earnings and Valuation

This table compares Plug Power and AZZ”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Plug Power	$628.81 million	2.88	-$2.10 billion	($2.31)	-0.68
AZZ	$1.59 billion	2.14	$128.83 million	$8.63	13.10

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

Insider and Institutional Ownership

43.5% of Plug Power shares are held by institutional investors. Comparatively, 90.9% of AZZ shares are held by institutional investors. 1.4% of Plug Power shares are held by insiders. Comparatively, 1.8% of AZZ shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Plug Power has a beta of 2.09, meaning that its share price is 109% more volatile than the S&P 500. Comparatively, AZZ has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Plug Power and AZZ, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Plug Power	5	7	4	0	1.94
AZZ	0	3	5	2	2.90

Plug Power currently has a consensus target price of $1.88, indicating a potential upside of 19.79%. AZZ has a consensus target price of $112.29, indicating a potential downside of 0.68%. Given Plug Power’s higher probable upside, equities research analysts clearly believe Plug Power is more favorable than AZZ.

Profitability

This table compares Plug Power and AZZ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Plug Power	-292.84%	-90.22%	-50.27%
AZZ	16.40%	15.54%	7.51%

Summary

AZZ beats Plug Power on 12 of the 15 factors compared between the two stocks.

About Plug Power

Plug Power Inc. develops hydrogen and fuel cell product solutions in North America, Europe, Asia, and internationally. The company offers GenDrive, a hydrogen-fueled proton exchange membrane (PEM) fuel cell system that provides power to material handling electric vehicles; GenSure, a stationary fuel cell solution that offers modular PEM fuel cell power to support the backup and grid-support power requirements of the telecommunications, transportation, and utility sectors; ProGen, a fuel cell stack and engine technology used in mobility and stationary fuel cell systems, and as engines in electric delivery vans; GenFuel, a liquid hydrogen fueling delivery, generation, storage, and dispensing system; GenCare, an ongoing Internet of Things-based maintenance and on-site service program for GenDrive fuel cell systems, GenSure fuel cell systems, GenFuel hydrogen storage and dispensing products, and ProGen fuel cell engines; and GenKey, an integrated turn-key solution for transitioning to fuel cell power. It also provides electrolyzers, a hydrogen generator for clean hydrogen production; liquefaction systems that provides liquid hydrogen to customers; cryogenic equipment for the distribution of liquified hydrogen, oxygen, argon, nitrogen and other cryogenic gases, including trailers and mobile storage equipment; and liquid hydrogen, an alternative fuel to fossil-based energy. The company sells its products through a direct product sales force, original equipment manufacturers, and dealer networks. Plug Power Inc. was incorporated in 1997 and is headquartered in Latham, New York.

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.