Walmart vs AutoZone Which Is Superior?

Walmart and AutoZone are two prominent companies in the retail industry, but they cater to different markets. Walmart is known for its wide range of products and services, while AutoZone specializes in automotive parts and accessories. Both companies have shown strong performance in the stock market, with Walmart being a consistent performer and AutoZone experiencing growth in recent years. Investors have the opportunity to diversify their portfolios by considering the stocks of these two companies.

Walmart or AutoZone?

When comparing Walmart 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 Walmart 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. Walmart has a dividend yield of 0.88%, while AutoZone has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Walmart reports a 5-year dividend growth of 1.85% year and a payout ratio of 33.23%. 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 Walmart P/E ratio at 38.50 and AutoZone's P/E ratio at 22.01. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Walmart P/B ratio is 8.60 while AutoZone's P/B ratio is -12.34.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Walmart has seen a 5-year revenue growth of 0.34%, while AutoZone's is 1.27%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Walmart's ROE at 23.31% and AutoZone's ROE at -54.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $93.04 for Walmart and $3345.44 for AutoZone. Over the past year, Walmart's prices ranged from $50.51 to $96.18, with a yearly change of 90.41%. AutoZone's prices fluctuated between $2510.00 and $3416.71, with a yearly change of 36.12%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.