AutoZone vs Five Below Which Is a Smarter Choice?

AutoZone and Five Below are two popular retail stocks that have been performing well in the market. AutoZone is a leading retailer of automotive parts and accessories, with a strong track record of revenue growth and profitability. Five Below, on the other hand, targets a younger demographic with its trendy and affordable products. Both stocks have shown resilience during economic downturns, making them attractive options for investors looking for stability and growth potential in their portfolios.

AutoZone or Five Below?

When comparing AutoZone and Five Below, 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 AutoZone and Five Below.

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. AutoZone has a dividend yield of -%, while Five Below has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AutoZone reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Five Below 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 AutoZone P/E ratio at 22.01 and Five Below's P/E ratio at 21.31. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AutoZone P/B ratio is -12.34 while Five Below's P/B ratio is 3.54.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AutoZone has seen a 5-year revenue growth of 1.27%, while Five Below's is 1.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AutoZone's ROE at -54.23% and Five Below's ROE at 16.79%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $3345.44 for AutoZone and $101.64 for Five Below. Over the past year, AutoZone's prices ranged from $2510.00 to $3416.71, with a yearly change of 36.12%. Five Below's prices fluctuated between $64.87 and $216.18, with a yearly change of 233.25%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.