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

Updated

Here’s a clear look at AZO and RH, 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 RH’s 3.55 billion USD by roughly 18.26×.

RH carries a higher beta at 2.36, indicating it’s more sensitive to market moves, while AZO remains steadier at 0.44.

SymbolAZORH
Company NameAutoZone, Inc.RH
CountryUSUS
SectorConsumer CyclicalConsumer Cyclical
IndustrySpecialty RetailSpecialty Retail
CEOMr. Philip B. Daniele IIIMr. Gary G. Friedman
Price3,872.6 USD189.41 USD
Market Cap64.78 billion USD3.55 billion USD
Beta0.442.36
ExchangeNYSENYSE
IPO DateApril 2, 1991November 2, 2012
ADRNoNo

Performance Comparison

This chart compares the performance of AZO and RH 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 RH 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 RH (-21.57), meaning liabilities exceed assets—signaling a critical solvency risk for both companies.
  • RH reports a negative Price-to-Free Cash Flow ratio of -16.60, showing a cash flow shortfall that could threaten its operational sustainability, while AZO at 32.17 maintains positive cash flow.
SymbolAZORH
Price-to-Earnings Ratio (P/E, TTM)25.6248.74
Forward PEG Ratio (TTM)2.131.46
Price-to-Sales Ratio (P/S, TTM)3.471.12
Price-to-Book Ratio (P/B, TTM)-14.98-21.57
Price-to-Free Cash Flow Ratio (P/FCF, TTM)32.17-16.60
EV-to-EBITDA (TTM)18.3716.22
EV-to-Sales (TTM)4.122.34
EV-to-Free Cash Flow (TTM)38.16-34.89

Dividend Comparison

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

SymbolAZORH
Dividend Yield (TTM)0.00%0.00%

Financial Strength Metrics Comparison

This section dives into the financial resilience of AZO and RH, 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 RH at 1.43 comfortably covers its short-term obligations.
  • Both AZO (quick ratio 0.13) and RH (quick ratio 0.30) fall below 0.8, meaning their most liquid assets—excluding inventory—aren’t enough to meet short-term obligations. This could force them to rely on receivables, inventory turn, or external financing.
  • Both AZO (debt-to-equity ratio -2.77) and RH (-24.07) exhibit negative shareholder equity—assets fall short of liabilities—signaling serious balance-sheet stress.
  • RH carries a debt-to-assets ratio of 0.86, suggesting substantial asset funding via debt, while AZO at 0.68 opts for a more conservative financing structure.
SymbolAZORH
Current Ratio (TTM)0.841.43
Quick Ratio (TTM)0.130.30
Debt-to-Equity Ratio (TTM)-2.77-24.07
Debt-to-Assets Ratio (TTM)0.680.86
Interest Coverage Ratio (TTM)7.901.42