AZO vs. MCD: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AZO and MCD, 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
MCD stands out with 226.27 billion USD in market value—about 3.49× AZO’s market cap of 64.78 billion USD.
With betas of 0.44 for AZO and 0.57 for MCD, both show similar volatility profiles relative to the overall market.
| Symbol | AZO | MCD |
|---|---|---|
| Company Name | AutoZone, Inc. | McDonald's Corporation |
| Country | US | US |
| Sector | Consumer Cyclical | Consumer Cyclical |
| Industry | Specialty Retail | Restaurants |
| CEO | Mr. Philip B. Daniele III | Mr. Christopher J. Kempczinski |
| Price | 3,872.6 USD | 316.44 USD |
| Market Cap | 64.78 billion USD | 226.27 billion USD |
| Beta | 0.44 | 0.57 |
| Exchange | NYSE | NYSE |
| IPO Date | April 2, 1991 | April 21, 1965 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AZO and MCD 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 MCD based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- Book value is underwater for both AZO (-14.98) and MCD (-65.50), meaning liabilities exceed assets—signaling a critical solvency risk for both companies.
| Symbol | AZO | MCD |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 25.62 | 27.72 |
| Forward PEG Ratio (TTM) | 2.13 | 3.62 |
| Price-to-Sales Ratio (P/S, TTM) | 3.47 | 8.80 |
| Price-to-Book Ratio (P/B, TTM) | -14.98 | -65.50 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 32.17 | 33.75 |
| EV-to-EBITDA (TTM) | 18.37 | 20.01 |
| EV-to-Sales (TTM) | 4.12 | 10.81 |
| EV-to-Free Cash Flow (TTM) | 38.16 | 41.44 |
Dividend Comparison
AZO offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while MCD provides a 2.17% dividend yield, giving investors a steady income stream.
| Symbol | AZO | MCD |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.17% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of AZO and MCD, 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 MCD at 1.18 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 MCD at 1.17 maintains a comfortable buffer of liquid assets.
- Both AZO (debt-to-equity ratio -2.77) and MCD (-15.28) exhibit negative shareholder equity—assets fall short of liabilities—signaling serious balance-sheet stress.
- MCD carries a debt-to-assets ratio of 0.94, suggesting substantial asset funding via debt, while AZO at 0.68 opts for a more conservative financing structure.
| Symbol | AZO | MCD |
|---|---|---|
| Current Ratio (TTM) | 0.84 | 1.18 |
| Quick Ratio (TTM) | 0.13 | 1.17 |
| Debt-to-Equity Ratio (TTM) | -2.77 | -15.28 |
| Debt-to-Assets Ratio (TTM) | 0.68 | 0.94 |
| Interest Coverage Ratio (TTM) | 7.90 | 7.70 |