AutoZone (NYSE:AZO) and HALFORDS Grp PL/ADR (OTCMKTS:HLFDY) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
Institutional and Insider Ownership
94.6% of AutoZone shares are owned by institutional investors. 2.8% of AutoZone shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a summary of current ratings and target prices for AutoZone and HALFORDS Grp PL/ADR, as reported by MarketBeat.
AutoZone presently has a consensus target price of $780.07, suggesting a potential upside of 0.55%. Given AutoZone’s higher probable upside, analysts clearly believe AutoZone is more favorable than HALFORDS Grp PL/ADR.
This table compares AutoZone and HALFORDS Grp PL/ADR’s net margins, return on equity and return on assets.
Valuation & Earnings
This table compares AutoZone and HALFORDS Grp PL/ADR’s gross revenue, earnings per share (EPS) and valuation.
AutoZone has higher revenue and earnings than HALFORDS Grp PL/ADR. HALFORDS Grp PL/ADR is trading at a lower price-to-earnings ratio than AutoZone, indicating that it is currently the more affordable of the two stocks.
HALFORDS Grp PL/ADR pays an annual dividend of $0.55 per share and has a dividend yield of 6.8%. AutoZone does not pay a dividend. HALFORDS Grp PL/ADR pays out 70.5% of its earnings in the form of a dividend.
Volatility and Risk
AutoZone has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, HALFORDS Grp PL/ADR has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.
AutoZone beats HALFORDS Grp PL/ADR on 14 of the 16 factors compared between the two stocks.
AutoZone Company Profile
AutoZone, Inc. retails and distributes automotive replacement parts and accessories. It offers various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. The company's products include A/C compressors, batteries and accessories, bearings, belts and hoses, calipers, carburetors, chassis, clutches, CV axles, engines, fuel pumps, fuses, ignition and lighting products, mufflers, radiators, thermostats, starters and alternators, and water pumps. It also offers maintenance products, such as antifreeze and windshield washer fluids; brake drums, rotors, shoes, and pads; brake and power steering fluids, and oil and fuel additives; oil and transmission fluids; oil, air, fuel, and transmission filters; oxygen sensors; paints and accessories; refrigerants and accessories; shock absorbers and struts; spark plugs and wires; and windshield wipers, as well as air fresheners, cell phone accessories, drinks and snacks, floor mats and seat covers, interior and exterior accessories, mirrors, performance products, protectants and cleaners, sealants and adhesives, steering wheel covers, stereos and radios, tools, and wash and wax products. In addition, the company provides a sales program that offers commercial credit and delivery of parts and other products; and tire repair services. Further, it sells automotive diagnostic and repair software under the ALLDATA brand through alldata.com and alldatadiy.com; automotive hard parts, maintenance items, accessories, and non-automotive products through autozone.com; and accessories, performance, and replacement parts through autoanything.com. As of December 05, 2017, it operated 5,480 stores in the United States, including Puerto Rico; 529 stores in Mexico; 14 stores in Brazil; and 26 Interamerican Motor Corporation branches. AutoZone, Inc. was founded in 1979 and is based in Memphis, Tennessee.
HALFORDS Grp PL/ADR Company Profile
Halfords Group plc, through its subsidiaries, retails automotive, leisure, and cycling products in the United Kingdom and the Republic of Ireland. It operates in two segments, Retail and Car Servicing. The company retails auto parts, accessories, cycles, and cycle accessories; and provides garage servicing and auto repair services. It also offers bicycle replacement for insurance companies under the Wheelies brand; and bikes and cycling parts, accessories, and clothing through online under the Tredz brand. It operates approximately 460 retail stores; and 20 Cycle Republic stores. Halfords Group plc was founded in 1892 and is based in Redditch, the United Kingdom.