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

Updated

Here’s a clear look at AZO and WSM, 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 WSM’s 20.64 billion USD by roughly 3.14×.

WSM carries a higher beta at 1.57, indicating it’s more sensitive to market moves, while AZO remains steadier at 0.44.

SymbolAZOWSM
Company NameAutoZone, Inc.Williams-Sonoma, Inc.
CountryUSUS
SectorConsumer CyclicalConsumer Cyclical
IndustrySpecialty RetailSpecialty Retail
CEOMr. Philip B. Daniele IIIMs. Laura J. Alber
Price3,872.6 USD167.92 USD
Market Cap64.78 billion USD20.64 billion USD
Beta0.441.57
ExchangeNYSENYSE
IPO DateApril 2, 1991July 7, 1983
ADRNoNo

Performance Comparison

This chart compares the performance of AZO and WSM 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 WSM 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). WSM, with a P/B of 9.66, maintains positive shareholder equity.
SymbolAZOWSM
Price-to-Earnings Ratio (P/E, TTM)25.6217.97
Forward PEG Ratio (TTM)2.132.67
Price-to-Sales Ratio (P/S, TTM)3.472.68
Price-to-Book Ratio (P/B, TTM)-14.989.66
Price-to-Free Cash Flow Ratio (P/FCF, TTM)32.1718.13
EV-to-EBITDA (TTM)18.3712.26
EV-to-Sales (TTM)4.122.69
EV-to-Free Cash Flow (TTM)38.1618.25

Dividend Comparison

AZO offers a 0% dividend yield, suggesting it may be reinvesting available cash back into the business for future growth, while WSM provides a 1.41% dividend yield, giving investors a steady income stream.

SymbolAZOWSM
Dividend Yield (TTM)0.00%1.41%

Financial Strength Metrics Comparison

This section dives into the financial resilience of AZO and WSM, 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 WSM at 1.44 comfortably covers its short-term obligations.
  • Both AZO (quick ratio 0.13) and WSM (quick ratio 0.74) 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.
  • AZO has negative equity (debt-to-equity ratio -2.77), an unusual warning sign, while WSM at 0.63 maintains a conventional debt-to-equity balance.
  • AZO (at 7.90) covers its interest payments, while WSM shows “--” for minimal debt service.
SymbolAZOWSM
Current Ratio (TTM)0.841.44
Quick Ratio (TTM)0.130.74
Debt-to-Equity Ratio (TTM)-2.770.63
Debt-to-Assets Ratio (TTM)0.680.25
Interest Coverage Ratio (TTM)7.90--