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

Company Overview

AZO’s market capitalization of 61.85 billion USD is substantially larger than DPZ’s 15.59 billion USD, indicating a significant difference in their market valuations.

DPZ carries a higher beta at 1.12, indicating it’s more sensitive to market moves, while AZO (beta: 0.40) exhibits greater stability.

Performance Comparison

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

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

This section compares the market valuation of AZO and DPZ. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• DPZ’s Forward PEG ratio of 2.90 is very high. This signifies that its current stock price is notably elevated compared to its anticipated earnings growth rate, possibly indicating that the market has already factored in, or even exceeded, realistic future performance expectations.
• AZO’s Price-to-Book (P/B) ratio of -14.31 and DPZ’s P/B ratio of -7.12 both indicate negative book values. For AZO, this signals that its liabilities exceed its assets, a critical financial concern. DPZ’s negative book value also points to significant issues with its financial stability and potential solvency risks.

Dividend Comparison

AZO currently offers no dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while DPZ provides a 1.38% dividend yield, offering investors a component of income return.

Financial Strength Metrics Comparison

This section evaluates the financial strength of AZO and DPZ. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.

• AZO’s current ratio of 0.84 and DPZ’s current ratio of 0.60 are both considered low. For AZO, this level suggests it might encounter challenges in using its current assets to satisfy its immediate financial obligations. DPZ’s low current ratio also points to potential constraints on its liquidity, meaning it could find it difficult to cover short-term liabilities with its available assets.
• AZO’s quick ratio of 0.13 is low. This suggests potential difficulty in meeting its immediate financial responsibilities with its most liquid assets (excluding inventory), possibly indicating a greater dependence on inventory turnover to service short-term debts.
• AZO’s Debt-to-Equity (D/E) ratio of -2.77 and DPZ’s D/E ratio of -2.35 both reflect negative shareholder equity. For AZO, this condition is a serious indicator of financial fragility, raising concerns about its operational viability. DPZ’s negative equity also points to critical solvency challenges and may impede its ability to meet long-term financial commitments.