Brady vs AutoZone Which Outperforms?

Brady Corporation and AutoZone are two companies that operate in vastly different sectors of the market. Brady is a global manufacturer and supplier of identification and safety products, while AutoZone is a leading retailer of automotive parts and accessories. Despite their differences, both companies have shown impressive growth and profitability in recent years, attracting the interest of investors. In this comparison, we will analyze the performance of Brady and AutoZone stocks to determine which may be the better investment option.

Brady or AutoZone?

When comparing Brady and AutoZone, 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 Brady and AutoZone.

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. Brady has a dividend yield of 1.54%, while AutoZone has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Brady reports a 5-year dividend growth of 2.07% year and a payout ratio of 22.85%. On the other hand, AutoZone 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 Brady P/E ratio at 18.57 and AutoZone's P/E ratio at 20.73. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Brady P/B ratio is 3.43 while AutoZone's P/B ratio is -11.62.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Brady has seen a 5-year revenue growth of 0.18%, while AutoZone's is 1.27%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Brady's ROE at 19.14% and AutoZone's ROE at -54.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $76.81 for Brady and $3117.96 for AutoZone. Over the past year, Brady's prices ranged from $52.68 to $77.68, with a yearly change of 47.46%. AutoZone's prices fluctuated between $2510.00 and $3256.37, with a yearly change of 29.74%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.