Seek Returns logo

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

Updated

Here’s a clear look at AZO and LULU, 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

AZO dominates in value with a market cap of 64.78 billion USD, eclipsing LULU’s 36.76 billion USD by roughly 1.76×.

LULU carries a higher beta at 1.30, indicating it’s more sensitive to market moves, while AZO remains steadier at 0.44.

SymbolAZOLULU
Company NameAutoZone, Inc.Lululemon Athletica Inc.
CountryUSCA
SectorConsumer CyclicalConsumer Cyclical
IndustrySpecialty RetailApparel - Retail
CEOMr. Philip B. Daniele IIIMr. Calvin R. McDonald
Price3,872.6 USD319.57 USD
Market Cap64.78 billion USD36.76 billion USD
Beta0.441.30
ExchangeNYSENASDAQ
IPO DateApril 2, 1991July 27, 2007
ADRNoNo

Performance Comparison

This chart compares the performance of AZO and LULU 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 LULU 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). LULU, with a P/B of 8.99, maintains positive shareholder equity.
SymbolAZOLULU
Price-to-Earnings Ratio (P/E, TTM)25.6221.43
Forward PEG Ratio (TTM)2.131.64
Price-to-Sales Ratio (P/S, TTM)3.473.47
Price-to-Book Ratio (P/B, TTM)-14.988.99
Price-to-Free Cash Flow Ratio (P/FCF, TTM)32.1723.22
EV-to-EBITDA (TTM)18.3712.81
EV-to-Sales (TTM)4.123.43
EV-to-Free Cash Flow (TTM)38.1622.96

Dividend Comparison

Neither AZO nor LULU currently pays a dividend yield; this often indicates they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.

SymbolAZOLULU
Dividend Yield (TTM)0.00%0.00%

Financial Strength Metrics Comparison

This section dives into the financial resilience of AZO and LULU, 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 LULU at 2.16 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 LULU at 1.38 maintains a comfortable buffer of liquid assets.
  • AZO has negative equity (debt-to-equity ratio -2.77), an unusual warning sign, while LULU at 0.36 maintains a conventional debt-to-equity balance.
  • AZO (at 7.90) covers its interest payments, while LULU shows “--” for minimal debt service.
SymbolAZOLULU
Current Ratio (TTM)0.842.16
Quick Ratio (TTM)0.131.38
Debt-to-Equity Ratio (TTM)-2.770.36
Debt-to-Assets Ratio (TTM)0.680.21
Interest Coverage Ratio (TTM)7.90--