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

Updated on July 7, 2025

Here’s a clear look at AZO and DHI, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

AZO’s market capitalization of 63.05 billion USD is substantially larger than DHI’s 40.52 billion USD, indicating a significant difference in their market valuations.

DHI carries a higher beta at 1.37, indicating it’s more sensitive to market moves, while AZO (beta: 0.40) exhibits greater stability.

Symbol	AZO	DHI
Company Name	AutoZone, Inc.	D.R. Horton, Inc.
Country	US	US
Sector	Consumer Cyclical	Consumer Cyclical
Industry	Specialty Retail	Residential Construction
CEO	Philip B. Daniele III	Paul J. Romanowski
Price	3,769.26 USD	131.9 USD
Market Cap	63.05 billion USD	40.52 billion USD
Beta	0.40	1.37
Exchange	NYSE	NYSE
IPO Date	April 2, 1991	June 5, 1992
ADR	No	No

Historical Performance

This chart compares the performance of AZO and DHI by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

AZO vs. DHI: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AZO

-57.43%

Specialty Retail Industry

Max: 70.52%
Q3: 29.03%
Median: 10.90%
Q1: -7.86%
Min: -57.43%

AZO has a negative Return on Equity of -57.43%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

DHI

17.21%

Residential Construction Industry

Max: 38.32%
Q3: 24.08%
Median: 16.46%
Q1: 12.92%
Min: 7.81%

DHI’s Return on Equity of 17.21% is on par with the norm for the Residential Construction industry, indicating its profitability relative to shareholder equity is typical for the sector.

AZO vs. DHI: A comparison of their ROE against their respective Specialty Retail and Residential Construction industry benchmarks.

Return on Invested Capital

AZO

15.20%

Specialty Retail Industry

Max: 29.46%
Q3: 13.75%
Median: 8.05%
Q1: 0.80%
Min: -17.95%

In the upper quartile for the Specialty Retail industry, AZO’s Return on Invested Capital of 15.20% signifies a highly effective use of its capital to generate profits when compared to its peers.

DHI

12.34%

Residential Construction Industry

Max: 19.08%
Q3: 12.67%
Median: 11.66%
Q1: 8.04%
Min: 3.73%

DHI’s Return on Invested Capital of 12.34% is in line with the norm for the Residential Construction industry, reflecting a standard level of efficiency in generating profits from its capital base.

AZO vs. DHI: A comparison of their ROIC against their respective Specialty Retail and Residential Construction industry benchmarks.

Net Profit Margin

AZO

13.56%

Specialty Retail Industry

Max: 19.78%
Q3: 8.49%
Median: 3.43%
Q1: -0.69%
Min: -9.88%

A Net Profit Margin of 13.56% places AZO in the upper quartile for the Specialty Retail industry, signifying strong profitability and more effective cost management than most of its peers.

DHI

12.15%

Residential Construction Industry

Max: 17.37%
Q3: 12.35%
Median: 10.36%
Q1: 8.29%
Min: 3.91%

DHI’s Net Profit Margin of 12.15% is aligned with the median group of its peers in the Residential Construction industry. This indicates its ability to convert revenue into profit is typical for the sector.

AZO vs. DHI: A comparison of their Net Profit Margin against their respective Specialty Retail and Residential Construction industry benchmarks.

Operating Profit Margin

AZO

19.63%

Specialty Retail Industry

Max: 24.47%
Q3: 11.10%
Median: 5.85%
Q1: 0.66%
Min: -12.62%

An Operating Profit Margin of 19.63% places AZO in the upper quartile for the Specialty Retail industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

DHI

15.43%

Residential Construction Industry

Max: 22.34%
Q3: 15.74%
Median: 12.30%
Q1: 9.51%
Min: 4.20%

DHI’s Operating Profit Margin of 15.43% is around the midpoint for the Residential Construction industry, indicating that its efficiency in managing core business operations is typical for the sector.

AZO vs. DHI: A comparison of their Operating Margin against their respective Specialty Retail and Residential Construction industry benchmarks.

Profitability at a Glance

Symbol	AZO	DHI
Return on Equity (TTM)	-57.43%	17.21%
Return on Assets (TTM)	13.77%	12.03%
Return on Invested Capital (TTM)	15.20%	12.34%
Net Profit Margin (TTM)	13.56%	12.15%
Operating Profit Margin (TTM)	19.63%	15.43%
Gross Profit Margin (TTM)	52.95%	25.50%

Financial Strength

Current Ratio

AZO

0.75

Specialty Retail Industry

Max: 3.24
Q3: 1.99
Median: 1.42
Q1: 1.02
Min: 0.54

AZO’s Current Ratio of 0.75 falls into the lower quartile for the Specialty Retail industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

DHI

17.19

Residential Construction Industry

Max: 26.19
Q3: 13.52
Median: 7.75
Q1: 3.72
Min: 1.49

DHI’s Current Ratio of 17.19 is in the upper quartile for the Residential Construction industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

AZO vs. DHI: A comparison of their Current Ratio against their respective Specialty Retail and Residential Construction industry benchmarks.

Debt-to-Equity Ratio

AZO

-2.99

Specialty Retail Industry

Max: 2.72
Q3: 1.42
Median: 0.87
Q1: 0.35
Min: 0.01

AZO has a Debt-to-Equity Ratio of -2.99, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.

DHI

0.27

Residential Construction Industry

Max: 0.60
Q3: 0.40
Median: 0.33
Q1: 0.17
Min: 0.00

DHI’s Debt-to-Equity Ratio of 0.27 is typical for the Residential Construction industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AZO vs. DHI: A comparison of their D/E Ratio against their respective Specialty Retail and Residential Construction industry benchmarks.

Interest Coverage Ratio

AZO

4.36

Specialty Retail Industry

Max: 37.34
Q3: 17.19
Median: 4.28
Q1: 0.11
Min: -23.60

AZO’s Interest Coverage Ratio of 4.36 is positioned comfortably within the norm for the Specialty Retail industry, indicating a standard and healthy capacity to cover its interest payments.

DHI

52.13

Residential Construction Industry

Max: 137.53
Q3: 119.57
Median: 59.70
Q1: 34.03
Min: 10.68

DHI’s Interest Coverage Ratio of 52.13 is positioned comfortably within the norm for the Residential Construction industry, indicating a standard and healthy capacity to cover its interest payments.

AZO vs. DHI: A comparison of their Interest Coverage against their respective Specialty Retail and Residential Construction industry benchmarks.

Financial Strength at a Glance

Symbol	AZO	DHI
Current Ratio (TTM)	0.75	17.19
Quick Ratio (TTM)	0.03	3.96
Debt-to-Equity Ratio (TTM)	-2.99	0.27
Debt-to-Asset Ratio (TTM)	0.64	0.18
Net Debt-to-EBITDA Ratio (TTM)	2.33	0.74
Interest Coverage Ratio (TTM)	4.36	52.13

Growth

The following charts compare key year-over-year (YoY) growth metrics for AZO and DHI. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AZO vs. DHI: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AZO vs. DHI: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AZO vs. DHI: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AZO

0.00%

Specialty Retail Industry

Max: 5.54%
Q3: 1.52%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

AZO currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

DHI

1.14%

Residential Construction Industry

Max: 2.41%
Q3: 1.31%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

DHI’s Dividend Yield of 1.14% is consistent with its peers in the Residential Construction industry, providing a dividend return that is standard for its sector.

AZO vs. DHI: A comparison of their Dividend Yield against their respective Specialty Retail and Residential Construction industry benchmarks.

Dividend Payout Ratio

AZO

0.00%

Specialty Retail Industry

Max: 177.64%
Q3: 9.49%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

AZO has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

DHI

10.49%

Residential Construction Industry

Max: 35.19%
Q3: 10.57%
Median: 2.40%
Q1: 0.00%
Min: 0.00%

DHI’s Dividend Payout Ratio of 10.49% is within the typical range for the Residential Construction industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AZO vs. DHI: A comparison of their Payout Ratio against their respective Specialty Retail and Residential Construction industry benchmarks.

Dividend at a Glance

Symbol	AZO	DHI
Dividend Yield (TTM)	0.00%	1.14%
Dividend Payout Ratio (TTM)	0.00%	10.49%

Valuation

Price-to-Earnings Ratio

AZO

24.62

Specialty Retail Industry

Max: 81.45
Q3: 42.51
Median: 25.40
Q1: 12.72
Min: 1.88

AZO’s P/E Ratio of 24.62 is within the middle range for the Specialty Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

DHI

9.60

Residential Construction Industry

Max: 9.55
Q3: 9.42
Median: 7.20
Q1: 6.63
Min: 3.19

At 9.60, DHI’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Residential Construction industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

AZO vs. DHI: A comparison of their P/E Ratio against their respective Specialty Retail and Residential Construction industry benchmarks.

Forward P/E to Growth Ratio

AZO

2.12

Specialty Retail Industry

Max: 5.90
Q3: 2.79
Median: 1.76
Q1: 0.69
Min: 0.00

AZO’s Forward PEG Ratio of 2.12 is within the middle range of its peers in the Specialty Retail industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

DHI

0.41

Residential Construction Industry

Max: 2.03
Q3: 1.05
Median: 0.49
Q1: 0.25
Min: 0.10

The Forward PEG Ratio is often not a primary valuation metric in the Residential Construction industry.

AZO vs. DHI: A comparison of their Forward PEG Ratio against their respective Specialty Retail and Residential Construction industry benchmarks.

Price-to-Sales Ratio

AZO

3.34

Specialty Retail Industry

Max: 5.26
Q3: 2.60
Median: 1.29
Q1: 0.41
Min: 0.06

AZO’s P/S Ratio of 3.34 is in the upper echelon for the Specialty Retail industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

DHI

1.15

Residential Construction Industry

Max: 2.31
Q3: 1.33
Median: 0.79
Q1: 0.56
Min: 0.20

DHI’s P/S Ratio of 1.15 aligns with the market consensus for the Residential Construction industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AZO vs. DHI: A comparison of their P/S Ratio against their respective Specialty Retail and Residential Construction industry benchmarks.

Price-to-Book Ratio

AZO

-15.88

Specialty Retail Industry

Max: 12.73
Q3: 6.96
Median: 3.28
Q1: 1.42
Min: 0.24

AZO has a negative P/B Ratio of -15.88, indicating its liabilities exceed its assets and result in negative shareholder equity. This is a critical warning sign of financial distress.

DHI

1.69

Residential Construction Industry

Max: 2.33
Q3: 1.66
Median: 1.08
Q1: 0.86
Min: 0.55

DHI’s P/B Ratio of 1.69 is in the upper tier for the Residential Construction industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

AZO vs. DHI: A comparison of their P/B Ratio against their respective Specialty Retail and Residential Construction industry benchmarks.

Valuation at a Glance

Symbol	AZO	DHI
Price-to-Earnings Ratio (P/E, TTM)	24.62	9.60
Forward PEG Ratio (TTM)	2.12	0.41
Price-to-Sales Ratio (P/S, TTM)	3.34	1.15
Price-to-Book Ratio (P/B, TTM)	-15.88	1.69
Price-to-Free Cash Flow Ratio (P/FCF, TTM)	31.49	14.78
EV-to-EBITDA (TTM)	14.99	8.04
EV-to-Sales (TTM)	3.95	1.26