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

Updated

Here’s a clear look at AZO and PDD, 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 PDD’s 41.24 billion USD by roughly 1.57×.

With betas of 0.44 for AZO and 0.56 for PDD, both show similar volatility profiles relative to the overall market.

PDD is an ADR, letting U.S. buyers tap its non-U.S. business directly, unlike AZO, which is purely domestic.

SymbolAZOPDD
Company NameAutoZone, Inc.PDD Holdings Inc.
CountryUSIE
SectorConsumer CyclicalConsumer Cyclical
IndustrySpecialty RetailSpecialty Retail
CEOMr. Philip B. Daniele IIIMr. Lei Chen
Price3,872.6 USD116.2 USD
Market Cap64.78 billion USD41.24 billion USD
Beta0.440.56
ExchangeNYSENASDAQ
IPO DateApril 2, 1991July 26, 2018
ADRNoYes

Performance Comparison

This chart compares the performance of AZO and PDD 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 PDD based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • PDD shows a negative forward PEG of -2.94, signaling expected earnings contraction, while AZO at 2.13 maintains analysts’ projections for stable or improved profits.
  • AZO has a negative P/B ratio of -14.98, indicating its liabilities exceed assets (negative equity). PDD, with a P/B of 3.96, maintains positive shareholder equity.
SymbolAZOPDD
Price-to-Earnings Ratio (P/E, TTM)25.6211.03
Forward PEG Ratio (TTM)2.13-2.94
Price-to-Sales Ratio (P/S, TTM)3.470.75
Price-to-Book Ratio (P/B, TTM)-14.983.96
Price-to-Free Cash Flow Ratio (P/FCF, TTM)32.172.44
EV-to-EBITDA (TTM)18.372.19
EV-to-Sales (TTM)4.120.63
EV-to-Free Cash Flow (TTM)38.162.05

Dividend Comparison

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

SymbolAZOPDD
Dividend Yield (TTM)0.00%0.00%

Financial Strength Metrics Comparison

This section dives into the financial resilience of AZO and PDD, 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 PDD at 2.21 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 PDD at 2.20 maintains a comfortable buffer of liquid assets.
  • AZO has negative equity (debt-to-equity ratio -2.77), an unusual warning sign, while PDD at 0.03 maintains a conventional debt-to-equity balance.
  • AZO (at 7.90) covers its interest payments, while PDD shows “--” for minimal debt service.
SymbolAZOPDD
Current Ratio (TTM)0.842.21
Quick Ratio (TTM)0.132.20
Debt-to-Equity Ratio (TTM)-2.770.03
Debt-to-Assets Ratio (TTM)0.680.02
Interest Coverage Ratio (TTM)7.90--