AZO vs. IP: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AZO and IP, 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 IP’s 26.62 billion USD, indicating a significant difference in their market valuations.
IP carries a higher beta at 0.99, indicating it’s more sensitive to market moves, while AZO (beta: 0.40) exhibits greater stability.
| Symbol | AZO | IP |
|---|---|---|
| Company Name | AutoZone, Inc. | International Paper Company |
| Country | US | US |
| Sector | Consumer Cyclical | Consumer Cyclical |
| Industry | Specialty Retail | Packaging & Containers |
| CEO | Philip B. Daniele III | Andrew K. Silvernail |
| Price | 3,769.26 USD | 50.43 USD |
| Market Cap | 63.05 billion USD | 26.62 billion USD |
| Beta | 0.40 | 0.99 |
| Exchange | NYSE | NYSE |
| IPO Date | April 2, 1991 | January 2, 1970 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AZO and IP 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.
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.
IP
3.65%
Packaging & Containers Industry
- Max
- 20.97%
- Q3
- 18.53%
- Median
- 9.15%
- Q1
- 3.67%
- Min
- -15.31%
IP’s Return on Equity of 3.65% is in the lower quartile for the Packaging & Containers industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
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.
IP
-6.57%
Packaging & Containers Industry
- Max
- 11.55%
- Q3
- 9.42%
- Median
- 6.03%
- Q1
- 2.83%
- Min
- -6.57%
IP has a negative Return on Invested Capital of -6.57%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
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.
IP
1.99%
Packaging & Containers Industry
- Max
- 10.07%
- Q3
- 5.37%
- Median
- 3.61%
- Q1
- 1.49%
- Min
- -2.97%
IP’s Net Profit Margin of 1.99% is aligned with the median group of its peers in the Packaging & Containers industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
IP
2.09%
Packaging & Containers Industry
- Max
- 14.60%
- Q3
- 11.93%
- Median
- 8.05%
- Q1
- 5.47%
- Min
- 2.09%
IP’s Operating Profit Margin of 2.09% is in the lower quartile for the Packaging & Containers industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | AZO | IP |
|---|---|---|
| Return on Equity (TTM) | -57.43% | 3.65% |
| Return on Assets (TTM) | 13.77% | 0.96% |
| Return on Invested Capital (TTM) | 15.20% | -6.57% |
| Net Profit Margin (TTM) | 13.56% | 1.99% |
| Operating Profit Margin (TTM) | 19.63% | 2.09% |
| Gross Profit Margin (TTM) | 52.95% | 28.59% |
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.
IP
1.33
Packaging & Containers Industry
- Max
- 1.88
- Q3
- 1.79
- Median
- 1.38
- Q1
- 1.16
- Min
- 0.80
IP’s Current Ratio of 1.33 aligns with the median group of the Packaging & Containers industry, indicating that its short-term liquidity is in line with its sector peers.
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.
IP
0.56
Packaging & Containers Industry
- Max
- 2.47
- Q3
- 2.22
- Median
- 1.22
- Q1
- 0.79
- Min
- 0.56
Falling into the lower quartile for the Packaging & Containers industry, IP’s Debt-to-Equity Ratio of 0.56 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
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.
IP
1.04
Packaging & Containers Industry
- Max
- 6.21
- Q3
- 4.64
- Median
- 2.89
- Q1
- 1.61
- Min
- -0.51
In the lower quartile for the Packaging & Containers industry, IP’s Interest Coverage Ratio of 1.04 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | AZO | IP |
|---|---|---|
| Current Ratio (TTM) | 0.75 | 1.33 |
| Quick Ratio (TTM) | 0.03 | 0.96 |
| Debt-to-Equity Ratio (TTM) | -2.99 | 0.56 |
| Debt-to-Asset Ratio (TTM) | 0.64 | 0.25 |
| Net Debt-to-EBITDA Ratio (TTM) | 2.33 | 4.52 |
| Interest Coverage Ratio (TTM) | 4.36 | 1.04 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AZO and IP. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
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.
IP
3.67%
Packaging & Containers Industry
- Max
- 9.30%
- Q3
- 4.22%
- Median
- 2.67%
- Q1
- 1.42%
- Min
- 0.00%
IP’s Dividend Yield of 3.67% is consistent with its peers in the Packaging & Containers industry, providing a dividend return that is standard for its sector.
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.
IP
182.87%
Packaging & Containers Industry
- Max
- 223.77%
- Q3
- 154.70%
- Median
- 54.74%
- Q1
- 23.39%
- Min
- 0.00%
IP’s Dividend Payout Ratio of 182.87% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
Dividend at a Glance
| Symbol | AZO | IP |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 3.67% |
| Dividend Payout Ratio (TTM) | 0.00% | 182.87% |
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.
IP
55.59
Packaging & Containers Industry
- Max
- 57.57
- Q3
- 40.45
- Median
- 25.12
- Q1
- 18.16
- Min
- 10.25
A P/E Ratio of 55.59 places IP in the upper quartile for the Packaging & Containers industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
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.
IP
2.67
Packaging & Containers Industry
- Max
- 3.19
- Q3
- 2.69
- Median
- 2.20
- Q1
- 2.02
- Min
- 2.02
IP’s Forward PEG Ratio of 2.67 is within the middle range of its peers in the Packaging & Containers industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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.
IP
1.34
Packaging & Containers Industry
- Max
- 1.99
- Q3
- 1.28
- Median
- 0.99
- Q1
- 0.75
- Min
- 0.36
IP’s P/S Ratio of 1.34 is in the upper echelon for the Packaging & Containers 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.
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.
IP
1.22
Packaging & Containers Industry
- Max
- 5.73
- Q3
- 3.44
- Median
- 2.08
- Q1
- 1.76
- Min
- 0.55
IP’s P/B Ratio of 1.22 is in the lower quartile for the Packaging & Containers industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | AZO | IP |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 24.62 | 55.59 |
| Forward PEG Ratio (TTM) | 2.12 | 2.67 |
| Price-to-Sales Ratio (P/S, TTM) | 3.34 | 1.34 |
| Price-to-Book Ratio (P/B, TTM) | -15.88 | 1.22 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 31.49 | -5324.42 |
| EV-to-EBITDA (TTM) | 14.99 | 17.99 |
| EV-to-Sales (TTM) | 3.95 | 1.79 |