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

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Here’s a clear look at AZO and SW, 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 SW’s 25.07 billion USD, indicating a significant difference in their market valuations.

SW carries a higher beta at 1.02, indicating it’s more sensitive to market moves, while AZO (beta: 0.40) exhibits greater stability.

SymbolAZOSW
Company NameAutoZone, Inc.Smurfit Westrock Plc
CountryUSIE
SectorConsumer CyclicalConsumer Cyclical
IndustrySpecialty RetailPackaging & Containers
CEOPhilip B. Daniele IIIAnthony Paul J. Smurfit
Price3,769.26 USD48.03 USD
Market Cap63.05 billion USD25.07 billion USD
Beta0.401.02
ExchangeNYSENYSE
IPO DateApril 2, 1991July 8, 2024
ADRNoNo

Historical Performance

This chart compares the performance of AZO and SW 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.

AZO vs. SW: Growth of a $10,000 investment over the past one year.

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.

SW

2.59%

Packaging & Containers Industry

Max
20.97%
Q3
18.53%
Median
9.15%
Q1
3.67%
Min
-15.31%

SW’s Return on Equity of 2.59% 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.

AZO vs. SW: A comparison of their ROE against their respective Specialty Retail and Packaging & Containers industry benchmarks.

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.

SW

1.30%

Packaging & Containers Industry

Max
11.55%
Q3
9.42%
Median
6.03%
Q1
2.83%
Min
-6.57%

SW’s Return on Invested Capital of 1.30% is in the lower quartile for the Packaging & Containers industry. This indicates a less efficient conversion of invested capital into profit compared to most of its competitors.

AZO vs. SW: A comparison of their ROIC against their respective Specialty Retail and Packaging & Containers industry benchmarks.

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.

SW

1.32%

Packaging & Containers Industry

Max
10.07%
Q3
5.37%
Median
3.61%
Q1
1.49%
Min
-2.97%

Falling into the lower quartile for the Packaging & Containers industry, SW’s Net Profit Margin of 1.32% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

AZO vs. SW: A comparison of their Net Profit Margin against their respective Specialty Retail and Packaging & Containers industry benchmarks.

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.

SW

3.50%

Packaging & Containers Industry

Max
14.60%
Q3
11.93%
Median
8.05%
Q1
5.47%
Min
2.09%

SW’s Operating Profit Margin of 3.50% 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.

AZO vs. SW: A comparison of their Operating Margin against their respective Specialty Retail and Packaging & Containers industry benchmarks.

Profitability at a Glance

SymbolAZOSW
Return on Equity (TTM)-57.43%2.59%
Return on Assets (TTM)13.77%0.85%
Return on Invested Capital (TTM)15.20%1.30%
Net Profit Margin (TTM)13.56%1.32%
Operating Profit Margin (TTM)19.63%3.50%
Gross Profit Margin (TTM)52.95%20.07%

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.

SW

1.43

Packaging & Containers Industry

Max
1.88
Q3
1.79
Median
1.38
Q1
1.16
Min
0.80

SW’s Current Ratio of 1.43 aligns with the median group of the Packaging & Containers industry, indicating that its short-term liquidity is in line with its sector peers.

AZO vs. SW: A comparison of their Current Ratio against their respective Specialty Retail and Packaging & Containers industry benchmarks.

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.

SW

0.80

Packaging & Containers Industry

Max
2.47
Q3
2.22
Median
1.22
Q1
0.79
Min
0.56

SW’s Debt-to-Equity Ratio of 0.80 is typical for the Packaging & Containers industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AZO vs. SW: A comparison of their D/E Ratio against their respective Specialty Retail and Packaging & Containers industry benchmarks.

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.

SW

1.51

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, SW’s Interest Coverage Ratio of 1.51 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

AZO vs. SW: A comparison of their Interest Coverage against their respective Specialty Retail and Packaging & Containers industry benchmarks.

Financial Strength at a Glance

SymbolAZOSW
Current Ratio (TTM)0.751.43
Quick Ratio (TTM)0.030.93
Debt-to-Equity Ratio (TTM)-2.990.80
Debt-to-Asset Ratio (TTM)0.640.32
Net Debt-to-EBITDA Ratio (TTM)2.338.16
Interest Coverage Ratio (TTM)4.361.51

Growth

The following charts compare key year-over-year (YoY) growth metrics for AZO and SW. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AZO vs. SW: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AZO vs. SW: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AZO vs. SW: A comparison of their annual year-over-year 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.

SW

2.42%

Packaging & Containers Industry

Max
9.30%
Q3
4.22%
Median
2.67%
Q1
1.42%
Min
0.00%

SW’s Dividend Yield of 2.42% is consistent with its peers in the Packaging & Containers industry, providing a dividend return that is standard for its sector.

AZO vs. SW: A comparison of their Dividend Yield against their respective Specialty Retail and Packaging & Containers industry benchmarks.

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.

SW

223.77%

Packaging & Containers Industry

Max
223.77%
Q3
154.70%
Median
54.74%
Q1
23.39%
Min
0.00%

SW’s Dividend Payout Ratio of 223.77% 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.

AZO vs. SW: A comparison of their Payout Ratio against their respective Specialty Retail and Packaging & Containers industry benchmarks.

Dividend at a Glance

SymbolAZOSW
Dividend Yield (TTM)0.00%2.42%
Dividend Payout Ratio (TTM)0.00%223.77%

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.

SW

64.21

Packaging & Containers Industry

Max
57.57
Q3
40.45
Median
25.12
Q1
18.16
Min
10.25

At 64.21, SW’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Packaging & Containers industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

AZO vs. SW: A comparison of their P/E Ratio against their respective Specialty Retail and Packaging & Containers industry benchmarks.

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.

SW

3.55

Packaging & Containers Industry

Max
3.19
Q3
2.69
Median
2.20
Q1
2.02
Min
2.02

SW’s Forward PEG Ratio of 3.55 is exceptionally high for the Packaging & Containers industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.

AZO vs. SW: A comparison of their Forward PEG Ratio against their respective Specialty Retail and Packaging & Containers industry benchmarks.

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.

SW

1.75

Packaging & Containers Industry

Max
1.99
Q3
1.28
Median
0.99
Q1
0.75
Min
0.36

SW’s P/S Ratio of 1.75 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.

AZO vs. SW: A comparison of their P/S Ratio against their respective Specialty Retail and Packaging & Containers industry benchmarks.

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.

SW

1.37

Packaging & Containers Industry

Max
5.73
Q3
3.44
Median
2.08
Q1
1.76
Min
0.55

SW’s P/B Ratio of 1.37 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.

AZO vs. SW: A comparison of their P/B Ratio against their respective Specialty Retail and Packaging & Containers industry benchmarks.

Valuation at a Glance

SymbolAZOSW
Price-to-Earnings Ratio (P/E, TTM)24.6264.21
Forward PEG Ratio (TTM)2.123.55
Price-to-Sales Ratio (P/S, TTM)3.341.75
Price-to-Book Ratio (P/B, TTM)-15.881.37
Price-to-Free Cash Flow Ratio (P/FCF, TTM)31.49-9675.68
EV-to-EBITDA (TTM)14.9938.77
EV-to-Sales (TTM)3.952.21