Head to Head Contrast: Yamada (OTCMKTS:YMDAF) versus AutoZone (NYSE:AZO)

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

Institutional and Insider Ownership

25.6% of Yamada shares are owned by institutional investors. Comparatively, 92.7% of AutoZone shares are owned by institutional investors. 2.5% of AutoZone shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Yamada and AutoZone, as provided by MarketBeat.com.

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

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

Valuation and Earnings

This table compares Yamada and AutoZone”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yamada	N/A	N/A	N/A	$30.81	0.09
AutoZone	$18.49 billion	2.72	$2.66 billion	$149.71	19.91

AutoZone has higher revenue and earnings than Yamada. Yamada is trading at a lower price-to-earnings ratio than AutoZone, indicating that it is currently the more affordable of the two stocks.

Profitability

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

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

Summary

AutoZone beats Yamada on 10 of the 11 factors compared between the two stocks.

About Yamada

Yamada Holdings Co., Ltd., together with its subsidiaries, operates in the consumer electronics retailing activities in Japan and internationally. It operates through Denki business, Housing, Finance, and Environmental segments. The Denki business segment sells home appliances, such as televisions, refrigerators, and washing machines, as well as home information appliances comprising personal computers, and mobile phones. The Housing segment sells detached houses, as well as manufactures and sells housing equipment, such as baths and kitchens. The Finance segment develops a range of financial products in the new construction, renovation, fund settlement, insurance products, and life plan proposals. The Environmental segment involved in the reuse, recycling and recycling business for products centered on home appliances and personal computers. The company was formerly known as Yamada Denki Co., Ltd. and changed its name to Yamada Holdings Co., Ltd. in October 2020. Yamada Holdings Co., Ltd. was founded in 1973 and is headquartered in Takasaki, Japan.

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.