AutoZone (NYSE:AZO) & Warby Parker (NYSE:WRBY) Critical Contrast

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

Insider and Institutional Ownership

93.2% of Warby Parker shares are owned by institutional investors. Comparatively, 92.7% of AutoZone shares are owned by institutional investors. 16.8% of Warby Parker shares are owned by company insiders. Comparatively, 2.6% of AutoZone shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Warby Parker and AutoZone”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Warby Parker	$871.91 million	3.27	$1.64 million	$0.02	1,333.10
AutoZone	$18.94 billion	2.61	$2.50 billion	$145.45	20.79

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Warby Parker and AutoZone, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warby Parker	0	5	9	0	2.64
AutoZone	0	6	20	1	2.81

Warby Parker currently has a consensus target price of $29.82, indicating a potential upside of 11.84%. AutoZone has a consensus target price of $4,040.87, indicating a potential upside of 33.61%. Given AutoZone’s stronger consensus rating and higher possible upside, analysts clearly believe AutoZone is more favorable than Warby Parker.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Warby Parker	0.15%	2.30%	1.18%
AutoZone	12.40%	-80.35%	12.33%

Risk and Volatility

Warby Parker has a beta of 1.91, suggesting that its share price is 91% more volatile than the S&P 500. Comparatively, AutoZone has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.

Summary

AutoZone beats Warby Parker on 9 of the 15 factors compared between the two stocks.

About Warby Parker

Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.

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.