Contrasting WH Smith (OTCMKTS:WHTPF) and AutoZone (NYSE:AZO)

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

Valuation and Earnings

This table compares WH Smith and AutoZone”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WH Smith	N/A	N/A	N/A	$0.76	19.47
AutoZone	$18.49 billion	2.87	$2.66 billion	$144.59	21.48

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

Analyst Ratings

This is a summary of recent ratings for WH Smith and AutoZone, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WH Smith	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 3.12%. Given AutoZone’s higher probable upside, analysts clearly believe AutoZone is more favorable than WH Smith.

Institutional & Insider Ownership

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 endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

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

Summary

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

About WH Smith

WH Smith PLC operates as a retailer in the United Kingdom and internationally. It operates in two segments, Travel and High Street. The Travel segment offers news, books, and convenience for travelling customers. It operates stores in airports, hospitals, railway stations, and motorway service areas. The High Street segment sells stationery products, including greeting cards, general stationery, art and craft, and gifting products; news and impulse products, such as newspapers, magazines, confectionery, and drinks; and books. The company sells its products through digital channels, such as whsmith.co.uk, funkypigeon.com, cultpens.com and dottyaboutpaper.co.uk. The company was founded in 1792 and is based in Swindon, the United Kingdom.

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.