APOG vs AAON

For growth investors, AAON, Inc.

(AAON) is the stronger pick with 20. 1% revenue growth year-over-year, versus 3. 2% for Apogee Enterprises, Inc. (APOG). Apogee Enterprises, Inc. (APOG) offers the better valuation at 14. 5x trailing P/E (10. 6x forward), making it the more compelling value choice. Analysts rate AAON, Inc. (AAON) a "Buy" — based on 5 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Apogee Enterprises, Inc.

(APOG) is the cheapest at 14. 5x versus AAON, Inc. at 76. 2x. On forward P/E, Apogee Enterprises, Inc. is actually cheaper at 10. 6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Apogee Enterprises, Inc. wins at 0. 31x versus AAON, Inc. 's 9. 13x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, AAON, Inc.

(AAON) delivered a total return of +134. 3%, compared to +13. 3% for Apogee Enterprises, Inc. (APOG). Over 10 years, the gap is even starker: AAON returned +440. 9% versus APOG's +9. 1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Apogee Enterprises, Inc.

(APOG) is the lower-risk stock at 1. 25β versus AAON, Inc. 's 1. 83β — meaning AAON is approximately 46% more volatile than APOG relative to the S&P 500. On balance sheet safety, AAON, Inc. (AAON) carries a lower debt/equity ratio of 48% versus 56% for Apogee Enterprises, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), AAON, Inc.

(AAON) is pulling ahead at 20. 1% versus 3. 2% for Apogee Enterprises, Inc. (APOG). On earnings-per-share growth, the picture is similar: Apogee Enterprises, Inc. grew EPS -35. 2% year-over-year, compared to -36. 1% for AAON, Inc.. Over a 3-year CAGR, AAON leads at 17. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

AAON, Inc.

(AAON) is the more profitable company, earning 7. 5% net margin versus 3. 9% for Apogee Enterprises, Inc. — meaning it keeps 7. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AAON leads at 10. 1% versus 6. 0% for APOG. At the gross margin level — before operating expenses — AAON leads at 26. 7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Apogee Enterprises, Inc. (APOG) is the more undervalued stock at a PEG of 0. 31x versus AAON, Inc. 's 9. 13x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Apogee Enterprises, Inc. (APOG) trades at 10. 6x forward P/E versus 49. 6x for AAON, Inc. — 39. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for APOG: 93. 5% to $70. 50.

All stocks in this comparison pay dividends.

Apogee Enterprises, Inc. (APOG) offers the highest yield at 2. 8%, versus 0. 4% for AAON, Inc. (AAON).

For long-horizon retirement investors, Apogee Enterprises, Inc.

(APOG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 25), 2. 8% yield). AAON, Inc. (AAON) carries a higher beta of 1. 83 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (APOG: +9. 1%, AAON: +440. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: APOG is a small-cap deep-value stock; AAON is a small-cap high-growth stock. APOG pays a dividend while AAON does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.