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AZO vs. BABA: A Head-to-Head Stock Comparison

Updated

Here’s a clear look at AZO and BABA, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.

Company Overview

BABA stands out with 295.92 billion USD in market value—about 4.57× AZO’s market cap of 64.78 billion USD.

AZO’s beta of 0.44 points to much larger expected swings compared to BABA’s calmer 0.24, suggesting both higher upside and downside potential.

BABA is an ADR, letting U.S. buyers tap its non-U.S. business directly, unlike AZO, which is purely domestic.

SymbolAZOBABA
Company NameAutoZone, Inc.Alibaba Group Holding Limited
CountryUSCN
SectorConsumer CyclicalConsumer Cyclical
IndustrySpecialty RetailSpecialty Retail
CEOMr. Philip B. Daniele IIIMr. Yongming Wu
Price3,872.6 USD123.59 USD
Market Cap64.78 billion USD295.92 billion USD
Beta0.440.24
ExchangeNYSENYSE
IPO DateApril 2, 1991September 19, 2014
ADRNoYes

Performance Comparison

This chart compares the performance of AZO and BABA over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

The section examines key financial ratios to assess the valuation of AZO and BABA based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • AZO has a negative P/B ratio of -14.98, indicating its liabilities exceed assets (negative equity). BABA, with a P/B of 2.03, maintains positive shareholder equity.
SymbolAZOBABA
Price-to-Earnings Ratio (P/E, TTM)25.6216.84
Forward PEG Ratio (TTM)2.131.52
Price-to-Sales Ratio (P/S, TTM)3.472.14
Price-to-Book Ratio (P/B, TTM)-14.982.03
Price-to-Free Cash Flow Ratio (P/FCF, TTM)32.1715.43
EV-to-EBITDA (TTM)18.3712.80
EV-to-Sales (TTM)4.122.21
EV-to-Free Cash Flow (TTM)38.1615.93

Dividend Comparison

AZO offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while BABA provides a 1.25% dividend yield, giving investors a steady income stream.

SymbolAZOBABA
Dividend Yield (TTM)0.00%1.25%

Financial Strength Metrics Comparison

This section dives into the financial resilience of AZO and BABA, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • AZO’s current ratio of 0.84 signals a possible liquidity squeeze, while BABA at 1.48 comfortably covers its short-term obligations.
  • AZO’s quick ratio of 0.13 suggests it may struggle to cover immediate liabilities without selling inventory or raising cash, whereas BABA at 1.48 maintains a comfortable buffer of liquid assets.
  • AZO has negative equity (debt-to-equity ratio -2.77), an unusual warning sign, while BABA at 0.23 maintains a conventional debt-to-equity balance.
SymbolAZOBABA
Current Ratio (TTM)0.841.48
Quick Ratio (TTM)0.131.48
Debt-to-Equity Ratio (TTM)-2.770.23
Debt-to-Assets Ratio (TTM)0.680.12
Interest Coverage Ratio (TTM)7.908.49