Critical Review: AutoZone (NYSE:AZO) versus Marketing Worldwide (OTCMKTS:MWWC)

AutoZone (NYSE:AZO) and Marketing Worldwide (OTCMKTS:MWWC) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Institutional and Insider Ownership

92.7% of AutoZone shares are held by institutional investors. 2.1% of AutoZone shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

AutoZone has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, Marketing Worldwide has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for AutoZone and Marketing Worldwide, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AutoZone	0	2	18	3	3.04
Marketing Worldwide	0	0	0	0	0.00

AutoZone currently has a consensus target price of $4,229.38, indicating a potential downside of 2.74%. Given Marketing Worldwide’s higher probable upside, analysts clearly believe Marketing Worldwide is more favorable than AutoZone.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AutoZone	13.56%	-56.07%	14.02%
Marketing Worldwide	N/A	N/A	N/A

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AutoZone	$18.49 billion	3.95	$2.66 billion	$147.75	29.43
Marketing Worldwide	N/A	N/A	-$120,000.00	N/A	N/A

AutoZone has higher revenue and earnings than Marketing Worldwide.

Summary

AutoZone beats Marketing Worldwide on 9 of the 12 factors compared between the two stocks.

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.

About Marketing Worldwide

Marketing Worldwide Corporation, through its subsidiaries, engages in the design, manufacture, painting, and distribution of automotive accessories for motor vehicles in the automotive aftermarket; and industrial components for the commercial machinery industries primarily in North America. The company's primary automotive accessory products services include the refinishing of blow-molded spoilers, front and rear fascia systems, side skirts, door panels, extruded body-side moldings, and interior components. Its principal automotive body components comprise hood scoops, grills, rear deck spoilers, body side moldings, front and rear fascia systems, side skirts, engine components, interior dash components, and large industrial components. The company sells its products to automotive and industrial original equipment manufacturers; and vehicle processing centers, manufacturers, and distributors, as well as through its Tier 1 partner companies. Marketing Worldwide Corporation was incorporated in 2003 and is headquartered in Howell, Michigan.