AZZ Inc. (AZZ) vs Dolby Laboratories (DLB)

AZZ Inc. and Dolby Laboratories are both Specialty Business Services companies. Dolby Laboratories is the larger, with a market value of $5.4B against $4.2B — 1.3× the size. AZZ Inc. trades at the lower P/E: 20.8× against 24.6×. AZZ Inc. grew revenue faster over the last twelve months: 5.68% against 0.55%. Dolby Laboratories has the higher net margin (16.7% vs 11.8%) and the lower return on invested capital (8.06% vs 9.16%). Both pay a dividend; Dolby Laboratories yields more (1.38% vs 1.01%). Across the 23 metrics below, AZZ Inc. leads on 12 and Dolby Laboratories on 11.

Valuation

Metric AZZ DLB Specialty Business Services median
P/E 20.75 24.61 23.86
P/S 2.45 4.07 1.06
P/B 2.98 2.13 2.37
Price to free cash flow 23.97 15.28 16.54
EV/EBITDA 12.16 13.96 11.51
EV/Sales 2.74 3.53 1.51
Earnings yield 4.82% 4.06% 2.14%
Free cash flow yield 4.17% 6.54% 1.55%

Profitability

Metric AZZ DLB Specialty Business Services median
Gross margin 24.04% 87.61% 35.31%
Operating margin 16.23% 17.65% 3.43%
Net margin 11.83% 16.70% 1.67%
Free cash flow margin 10.22% 26.66% 3.28%
Return on equity 15.32% 8.69% 0.58%
Return on assets 8.99% 7.12% 0.33%
Return on invested capital 9.16% 8.06% 0.65%

Growth

Metric AZZ DLB Specialty Business Services median
Revenue growth (TTM) 5.68% 0.55% 6.04%
EPS growth (last fiscal year) 486.59% (2.60%) —
Revenue growth, 5-year CAGR 25.69% 3.04% 7.66%
Net income growth, 5-year CAGR 30.44% 1.97% 0.00%

Health

Metric AZZ DLB Specialty Business Services median
Debt to equity 0.35 0.00 0.21
Current ratio 1.92 3.19 1.62
Net debt to EBITDA 1.30 (2.18) 1.16

Dividend

Metric AZZ DLB Specialty Business Services median
Dividend yield 1.01% 1.38% 1.61%
Payout ratio 0.25 0.47 0.00

Size

Metric AZZ DLB Specialty Business Services median
Market cap 4.15b 5.38b 879.14m

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