Compare StocksAZO vs GOOGL

AutoZone, Inc. (AZO) vs Alphabet Inc. (GOOGL): Which Is the Better Buy in 2026?

As of 2026-06-19, AZO is undervalued at $3064, with a DCF intrinsic value of $4466 and a margin of safety of 31%. GOOGL is overvalued at $368, with an intrinsic value of $94 and a margin of safety of -290%. Of the two, AZO has the wider margin of safety.

AZO
AutoZone, Inc.
$3064.48
VS
GOOGL
Alphabet Inc.
$368.03

Rewards

AZO
  • AutoZone, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • AutoZone, Inc. scores 89/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
  • Share count has been reduced by 13% over the past 4 years through buybacks, increasing each share's claim on earnings.
GOOGL
  • Alphabet Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • Gross margin of 60.4% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • Alphabet Inc. scores 89/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.

Risks

AZO
  • Each dollar of retained earnings has produced only $0.10 of earning power — shareholders may have been better served by dividends.
  • Free cash flow has declined at a 11.0% CAGR over the past 4 years — a concerning trend.
GOOGL
  • FCF yield of 1.6% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.

Key Valuation Metrics

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AZO
GOOGL
Valuation
$1.79B
Free Cash Flow
$73.27B
3.57%
FCF Yield
1.63%
21.07
Trailing P/E
28.09
17.45
Forward P/E
25.39
Quality & Moat
23.02%
ROIC
20.98%
N/A
ROE
38.88%
51.75%
Gross Margin
60.37%
1.41
PEG Ratio
1.47
Balance Sheet Safety
N/A
Net Debt / Equity
Net cash
N/A
Interest Coverage
N/A
3.01
Net Debt / EBITDA
-0.19
0.00%
Dividend Yield
0.24%
AZO: 4Ties: 2GOOGL: 4
AZOGOOGL

Historical Fundamentals

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AZO

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

GOOGL

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

$1 Retained Earnings Test

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AZO
$1.22
created per $1 retained over 3 years
Value Creator
Σ Retained
$7.69B
Δ Market Cap
+$9.35B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
GOOGL
$9.18
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$288.67B
Δ Market Cap
+$2.65T
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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AZO
30.9% Margin of Safety
Price is 30.9% below estimated fair value
Current Price: $3064.48
Fair Value: $4434.04
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
GOOGL
289.6% Overvalued
Price is 289.6% above estimated fair value
Current Price: $368.03
Fair Value: $94.46
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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AZO

What growth rate is the market pricing in at $3064?

+10.8%
Market-Implied Owner Earnings Growth
Standard FCF implies +15.4%

The market implies +10.8% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +15.4%, reflecting heavy growth investment.

GOOGL

What growth rate is the market pricing in at $368?

+22.9%
Market-Implied FCF Growth Rate

Market pricing in significantly higher growth than history — aggressive.

Economic Moat Score

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AZO
89/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Revenue Predictability is the standout factor.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
GOOGL
89/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by roic consistency. Reinvestment Efficiency is the area most vulnerable to competitive pressure.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

Forensic Accounting

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AZO
-2.36
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
GOOGL
-2.92
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

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AZO
Insiders 0.2%Institutions 94.9%Retail & Other 4.8%
No. of Institutional Holders1,810
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
GOOGL
Insiders 1.2%Institutions 80.8%Retail & Other 18.1%
No. of Institutional Holders7,263
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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AZO
1
Buys (3M)
4
Buys (12M)
Total value (12M): $1.67M
HANNASCH BRIAN
Director
$492,855
@ $2987.00 · 2026-05-29
GEORGE MICHAEL A
Director
$492,729
@ $3398.13 · 2025-12-22
HANNASCH BRIAN
Director
$498,784
@ $3393.09 · 2025-12-18
JACKSON JAMERE
Chief Financial Officer
$187,742
@ $3413.49 · 2025-12-10
Open market purchases · includes direct & indirect ownership · excludes option exercises
GOOGL
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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AZO
1
Sells (3M)
10
Sells (12M)
Total value (12M): $71.94M
GRAVES EARL G JR
Director
$173,936
@ $3478.72 · 2026-04-10
SMITH RICHARD CRAIG
Officer
$21.87M
@ $3700.00 · 2026-01-23
SMITH RICHARD CRAIG
Officer
$11.16M
@ $3500.00 · 2026-01-16
GRAVES EARL G JR
Director
$823,750
@ $3295.00 · 2026-01-02
MRKONIC GEORGE R JR
Director
$323,538
@ $3370.19 · 2026-01-02
BORNINKHOF MICHELLE K
Chief Technology Officer
$1.13M
@ $3775.00 · 2025-10-27
DANIELE PHILIP B. III
Chief Executive Officer
$10.18M
@ $4020.88 · 2025-10-17
MURPHY JOHN SCOTT
Officer
$11.94M
@ $4175.70 · 2025-09-24
SMITH RICHARD CRAIG
Officer
$11.63M
@ $3875.90 · 2025-07-24
BORNINKHOF MICHELLE K
Chief Technology Officer
$2.70M
@ $3597.13 · 2025-06-20
RHODES WILLIAM C III
Officer and Director
$102.00M
@ $3708.94 · 2025-06-10
JACKSON JAMERE
Chief Financial Officer
$9.74M
@ $3728.05 · 2025-05-30
HURTADO DOMINGO
Officer
$17.57M
@ $3660.00 · 2025-04-22
GOULD ERIC S
Officer
$5.70M
@ $3800.00 · 2025-03-31
DANIELE PHILIP B. III
Chief Executive Officer
$7.60M
@ $3800.01 · 2025-03-27
SMITH RICHARD CRAIG
Officer
$10.29M
@ $3610.00 · 2025-03-20
BORNINKHOF MICHELLE K
Chief Technology Officer
$481,575
@ $3567.22 · 2025-03-11
LERICHE DENNIS W
Officer
$5.67M
@ $3600.00 · 2025-03-07
CHILDRESS BAILEY L
Officer
$568,000
@ $3550.00 · 2025-03-05
MRKONIC GEORGE R JR
Director
$1.08M
@ $3202.29 · 2024-12-31
RHODES WILLIAM C III
Officer and Director
$40.39M
@ $3107.15 · 2024-10-10
RHODES WILLIAM C III
Officer and Director
$7.56M
@ $3105.97 · 2024-10-03
RHODES WILLIAM C III
Officer and Director
$34.28M
@ $3098.44 · 2024-10-02
MURPHY JOHN SCOTT
Officer
$4.91M
@ $3107.69 · 2024-09-25
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
GOOGL
0
Sells (3M)
0
Sells (12M)
No open market insider sales found.
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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AZO
FearGreed
😐Neutral(42/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
GOOGL
FearGreed
😐Neutral(58/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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AZO
Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (42)
GOOGL
Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (58)
View AZO Full AnalysisView GOOGL Full Analysis

Frequently Asked Questions: AZO vs GOOGL

Is AutoZone, Inc. or Alphabet Inc. more undervalued in 2026?

Based on our discounted cash flow model, AZO trades at a 31.4% margin of safety (intrinsic value $4466 vs. price $3064), compared to GOOGL's -289.6% margin of safety (intrinsic $94 vs. $368).

Which stock has a wider economic moat, AutoZone, Inc. or Alphabet Inc.?

GOOGL scores 89/100 (Wide moat), while AZO scores 89/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Alphabet Inc. in financial distress?

GOOGL's Altman Z-Score of 2.4 places it in the Grey zone, signaling elevated bankruptcy risk. AZO scores 2.7 (Grey zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which company has better free cash flow, AutoZone, Inc. or Alphabet Inc.?

AutoZone, Inc. (AZO) generates a 3.6% free cash flow yield, compared to Alphabet Inc.'s 1.6%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.

Which stock has higher return on invested capital, AutoZone, Inc. or Alphabet Inc.?

AZO earns 23.0% ROIC versus GOOGL's 21.0%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.