AZZ (NYSE:AZZ) & Teleperformance (OTCMKTS:TLPFY) Critical Comparison

AZZ (NYSE:AZZ) and Teleperformance (OTCMKTS:TLPFY) are both industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Analyst Recommendations

This is a summary of current ratings for AZZ and Teleperformance, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AZZ	0	1	1	0	2.50
Teleperformance	0	4	1	0	2.20

AZZ presently has a consensus target price of $80.00, suggesting a potential upside of 11.70%. Given AZZ’s stronger consensus rating and higher possible upside, equities analysts clearly believe AZZ is more favorable than Teleperformance.

Dividends

AZZ pays an annual dividend of $0.68 per share and has a dividend yield of 0.9%. Teleperformance pays an annual dividend of $0.30 per share and has a dividend yield of 0.6%. AZZ pays out 19.8% of its earnings in the form of a dividend. Teleperformance pays out 26.0% 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. AZZ is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares AZZ and Teleperformance’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AZZ	$1.54 billion	1.17	$101.61 million	$3.43	20.88
Teleperformance	N/A	N/A	N/A	$1.15	41.16

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AZZ	6.61%	15.66%	6.02%
Teleperformance	N/A	N/A	N/A

Insider and Institutional Ownership

90.9% of AZZ shares are owned by institutional investors. 2.1% of AZZ shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

AZZ beats Teleperformance on 11 of the 12 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 Teleperformance

Teleperformance SE, together with its subsidiaries, engages in the customers consultancy services in France and internationally. The company operates in two segments, Core Services and Digital Integrated Business Services, and Specialized Services. The company offers customer relationship operations, technical support, technical assistance and customer acquisition services, management of business processes, back office and digital platform services, consulting, data analysis services, on-line interpretation, visa application management, health management services, and accounts receivable credit management services, and recruitment process outsource services. It also provides digital CX, trust and safety, artificial intelligence, video CX, metaverse, CX management, advanced analytics, business transformation consulting, technology as a service, collection service, interpretation and translation, and healthcare support services. The company serves automotive, energy and utilities, insurance, government, technology, travel and hospitality, and banking and financial services, as well as healthcare, media, retail and e-commerce, cargo, telecom, and video games industries. Teleperformance SE was incorporated in 1989 and is headquartered in Paris, France.