AZEK vs Trex Which Performs Better?

AZEK and Trex are two major players in the decking industry, known for their high-quality, durable products. Both companies have seen significant growth in recent years as the demand for outdoor living spaces has increased. Investors are often torn between AZEK and Trex stocks, as both companies offer promising opportunities for growth and profitability. By comparing the financial performance, product offerings, and market presence of AZEK and Trex, investors can make informed decisions about which stock is the better investment for their portfolio.

AZEK or Trex?

When comparing AZEK and Trex, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between AZEK and Trex.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. AZEK has a dividend yield of -%, while Trex has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AZEK reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Trex reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with AZEK P/E ratio at 50.20 and Trex's P/E ratio at 34.93. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AZEK P/B ratio is 5.67 while Trex's P/B ratio is 9.39.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AZEK has seen a 5-year revenue growth of 0.50%, while Trex's is 0.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AZEK's ROE at 11.16% and Trex's ROE at 28.89%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $52.88 for AZEK and $76.28 for Trex. Over the past year, AZEK's prices ranged from $35.38 to $54.91, with a yearly change of 55.19%. Trex's prices fluctuated between $58.68 and $101.91, with a yearly change of 73.67%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.