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How Does AutoZone Compare to Its Peers?

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Sep. 24 2015, Updated 11:07 a.m. ET

AutoZone and its peers

In this part of the series, we’ll take a look at AutoZone’s income statement in 4Q15.

  • Net profit margins for AutoZone (AZO), Genuine Parts (GPC), O’Reilly Automotive (ORLY), Advance Auto Parts (AAP), and Dorman Products (DORM) are 12.19%, 4.96%, 11.47%, 6.33%, and 11.65%, respectively.

  • EPS (earnings per share) for AutoZone (AZO), Genuine Parts (GPC), O’Reilly Automotive (ORLY), Advance Auto Parts (AAP), and Dorman Products (DORM) are $12.75, $1.28, $2.29, $2.03, and $0.65, respectively.

Now let’s look at AutoZone’s valuation.

  • The PE (price-to-earnings) ratios for AutoZone (AZO), Genuine Parts (GPC), O’Reilly Automotive (ORLY), Advance Auto Parts (AAP), and Dorman Products (DORM) are 20.97x, 17.94x, 30.15x, 25.39x, and 20.98x, respectively.

According to the above findings, based on net profit margin and EPS, AutoZone has outperformed its competitors.

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ETFs that invest in AutoZone

The PowerShares DWA Consumer Cyclicals Momentum ETF (PEZ) invests 2.83% of its holdings in AutoZone. The ETF tracks an index of US consumer cyclical companies selected and weighted by price momentum.

The VanEck Vectors Retail ETF (RTH) invests 2.34% of its holdings in AutoZone. The ETF tracks a market-cap weighted index of the 25 largest US-listed companies that derive most of their revenues from retail.

The PowerShares Dynamic Large Cap Growth ETF (PWB) invests 1.45% of its holdings in AutoZone. The ETF tracks an index that uses a multifactor selection methodology to select 50 large-cap stocks with growth characteristics.

AutoZone compared to its ETFs

The year-to-date price movements of AutoZone (AZO), PEZ, RTH, and PWB are 17.59%, 5.73%, 5.79%, and 4.43%, respectively.

The PE (price-to-earnings) ratios of AutoZone (AZO), PEZ, RTH, and PWB are 20.97x, 22.04x, 26.20x, and 25.06x, respectively.

Based on price movement, AutoZone has outperformed its ETFs. Based on PE ratio, the performance is quite similar.

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