Head-To-Head Analysis: Magazine Luiza (OTC:MGLUY) vs. AutoZone (NYSE:AZO)

Magazine Luiza (OTC:MGLUY) and AutoZone (NYSE:AZO) are both consumer cyclical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations for Magazine Luiza and AutoZone, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magazine Luiza	0	0	0	0	N/A
AutoZone	1	2	14	4	3.00

AutoZone has a consensus target price of $3,202.71, indicating a potential upside of 7.43%. Given AutoZone’s higher probable upside, analysts plainly believe AutoZone is more favorable than Magazine Luiza.

Earnings & Valuation

This table compares Magazine Luiza and AutoZone”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magazine Luiza	N/A	N/A	N/A	N/A	N/A
AutoZone	$18.49 billion	2.72	$2.66 billion	$149.71	19.91

AutoZone has higher revenue and earnings than Magazine Luiza.

Profitability

This table compares Magazine Luiza and AutoZone’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magazine Luiza	N/A	N/A	N/A
AutoZone	14.40%	-52.99%	15.46%

Institutional & Insider Ownership

92.7% of AutoZone shares are held by institutional investors. 2.5% of AutoZone shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

AutoZone beats Magazine Luiza on 8 of the 9 factors compared between the two stocks.

About Magazine Luiza

Magazine Luiza S.A. engages in the retail sale of consumer goods. It operates through Retail, Financial Operations, Insurance Operations, and Other Services segments. The company also grants credit and provides extended warranties for its products. In addition, it is involved in the provision of consortium and management services; and e-commerce of perfumes, cosmetics, sports, and fashion products, as well as product delivery management and software development services. Further, the company provides integration, logistics, and technological solutions, as well as resale goods and provision of services in the stores, electronic and food delivery management platform. It serves through physical stores, e-commerce platform, and SuperApp. The company was founded in 1957 and is headquartered in Franca, Brazil. Magazine Luiza S.A. operates as a subsidiary of LTD Administração e Participação S.A.

About AutoZone

AutoZone, Inc. retails and distributes automotive replacement parts and accessories in the United States, Mexico, and Brazil. The company provides various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. It also offers A/C compressors, batteries and accessories, bearings, belts and hoses, calipers, chassis, clutches, CV axles, engines, fuel pumps, fuses, ignition and lighting products, mufflers, radiators, starters and alternators, thermostats, and water pumps, as well as tire repairs. In addition, the company provides maintenance products, such as antifreeze and windshield washer fluids; brake drums, rotors, shoes, and pads; brake and power steering fluids, and oil and fuel additives; oil and transmission fluids; oil, cabin, air, fuel, and transmission filters; oxygen sensors; paints and accessories; refrigerants and accessories; shock absorbers and struts; spark plugs and wires; and windshield wipers. Further, it offers air fresheners, cell phone accessories, drinks and snacks, floor mats and seat covers, interior and exterior accessories, mirrors, performance products, protectants and cleaners, sealants and adhesives, steering wheel covers, tools, vehicle entertainment systems, and wash and wax products, as well as towing services. Additionally, the company provides a sales program that offers commercial credit and delivery of parts and other products; sells automotive diagnostic and repair software under the ALLDATA brand through alldata.com and alldatadiy.com; and automotive hard parts, maintenance items, accessories, and non-automotive products through autozone.com. AutoZone, Inc. was founded in 1979 and is headquartered in Memphis, Tennessee.