Contrasting Dunelm Group (OTCMKTS:DNLMY) & AutoZone (NYSE:AZO)

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

Profitability

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

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

Analyst Ratings

This is a breakdown of recent ratings for Dunelm Group and AutoZone, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dunelm Group	0	0	0	3	4.00
AutoZone	1	2	14	4	3.00

AutoZone has a consensus target price of $3,202.71, indicating a potential upside of 4.67%. Given AutoZone’s higher probable upside, analysts plainly believe AutoZone is more favorable than Dunelm Group.

Insider and Institutional 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 stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dunelm Group	$2.15 billion	1.51	$182.96 million	N/A	N/A
AutoZone	$18.49 billion	2.80	$2.66 billion	$149.71	20.44

AutoZone has higher revenue and earnings than Dunelm Group.

Risk and Volatility

Dunelm Group has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500. Comparatively, AutoZone has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Summary

AutoZone beats Dunelm Group on 11 of the 13 factors compared between the two stocks.

About Dunelm Group

Dunelm Group plc retails homewares in the United Kingdom. The company offers furniture and beds products, which include bedroom, living room, dining room, and other furniture, as well as bed and mattresses, and sofas and armchairs; bedding products comprising bed linen, dorma, baby and kid’s bedding, and duvets, pillows, and protectors; curtains and rugs; and venetian, roller, roman, vertical, and made to measure blinds. It also offers range of home decor products, such as wall art and décor, mirrors, clocks, ornaments, pictures and frames, candle and home fragrance, flower and plants, vases, decorative trays and bowls, kid’s decor, plant pots, cushions, throws, draught excluders, doorstops, bean bags, and letterbox flowers, as well as housewarming, engagement, anniversary, and wedding gifts; lighting products, including ceiling and wall lights, table and desk lamps, floor lamps, and pendants and lamp shades; and paint, wallpaper, DIY and upcycling, and haberdashery products. In addition, the company provides kitchen and utility products comprising cooking, dining, electrical, utility, and pet products; bathroom accessories, as well as furniture and decor products; storage products, such as travel and luggage, home, clothes, and kitchen storage; kids bedroom, furniture, nursery, and accessories products; and Christmas products and winter essentials. It operates through a network of stores, as well as sells its products through an online store at dunelm.com. Dunelm Group plc was founded in 1979 and is based in Syston, 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.