AutoZone, Inc. (AZO) vs Johnson & Johnson (JNJ) Stock Comparison

Compare Stocks › AZO vs JNJ

AZO

AutoZone, Inc.

$3341.58

JNJ

Johnson & Johnson

$237.60

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.

JNJ

★Johnson & Johnson has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
★Gross margin of 68.1% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
★Johnson & Johnson scores 90/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.

Risks

AZO

⚠Insiders have sold $34.2M worth of stock in the past 3 months — significant insider liquidation.
⚠Free cash flow has declined at a 11.0% CAGR over the past 4 years — a concerning trend.

JNJ

⚠FCF yield of 2.9% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
⚠7 insider sales totaling $58.4M with no purchases in the past 3 months — insiders are reducing their exposure.

Key Valuation Metrics

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AZO

JNJ

Valuation

$1.79B

Free Cash Flow

$16.63B

3.24%

FCF Yield

2.90%

23.42

Trailing P/E

21.56

19.13

Forward P/E

18.90

Quality & Moat

19.90%

ROIC

13.63%

N/A

ROE

32.87%

52.15%

Gross Margin

68.08%

N/A

PEG Ratio

0.44

Balance Sheet Safety

N/A

Debt / Equity

0.60

N/A

Interest Coverage

N/A

2.92

Net Debt / EBITDA

0.86

N/A

Dividend Yield

2.19%

AZO: 2Ties: 2JNJ: 4

AZOJNJ

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.

JNJ

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

$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

JNJ

$0.91

created per $1 retained over 3 years

Mediocre Allocator

Σ Retained

$40.05B

Δ Market Cap

+$36.63B

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

33.7% Margin of Safety

Price is 33.7% below estimated fair value

Current Price: $3341.58

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $5036.42

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

JNJ

2.9% Margin of Safety

Price is 2.9% below estimated fair value

Current Price: $237.60

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $244.77

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 $3342?

+11.8%

Market-Implied Owner Earnings Growth

Standard FCF implies +16.3%

The market implies +11.8% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +16.3%, reflecting heavy growth investment.

JNJ

What growth rate is the market pricing in at $238?

+9.3%

Market-Implied Owner Earnings Growth

Standard FCF implies +15.8%

The market implies +9.3% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding +15.8%, reflecting heavy growth investment expected to generate future returns.

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.

JNJ

90/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

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

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.

JNJ

-2.31

Unlikely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Ownership Breakdown

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AZO

Insiders 0.2%Institutions 94.4%Retail & Other 5.4%

No. of Institutional Holders1,851

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.

JNJ

Insiders 0.1%Institutions 75.8%Retail & Other 24.2%

No. of Institutional Holders5,544

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

Buys (3M)

Buys (12M)

Total value (12M): $1.18M

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

BEDSOLE JENNA M

Officer

$99,256

@ $2757.11 · 2024-05-23

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

JNJ

Buys (3M)

Buys (12M)

Total value (12M): $257,688

MORIKIS JOHN G

Director

$257,688

@ $206.15 · 2025-11-26

WEINBERGER MARK A

Director

$147,220

@ $147.22 · 2024-12-12

WOODS EUGENE A

Director

$14,553

@ $145.53 · 2024-04-30

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

Sells (3M)

Sells (12M)

Total value (12M): $214.37M

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

RHODES WILLIAM C III

Officer and Director

$38.44M

@ $3189.75 · 2024-03-26

RHODES WILLIAM C III

Officer and Director

$21.37M

@ $3190.22 · 2024-03-26

GOULD ERIC S

Officer

$6.72M

@ $3200.00 · 2024-03-21

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

JNJ

Sells (3M)

Sells (12M)

Total value (12M): $101.23M

DECKER ROBERT J

Officer

$1.01M

@ $247.87 · 2026-02-27

SCHMID TIMOTHY

Officer

$324,763

@ $245.66 · 2026-02-20

SCHMID TIMOTHY

Officer

$5.53M

@ $244.33 · 2026-02-18

WOLK JOSEPH J

Chief Financial Officer

$21.77M

@ $242.80 · 2026-02-17

SWANSON JAMES D

Chief Technology Officer

$15.11M

@ $243.39 · 2026-02-17

BROADHURST VANESSA

Officer

$1.51M

@ $243.39 · 2026-02-17

REED JOHN C

Officer

$13.11M

@ $243.00 · 2026-02-17

REED JOHN C

Officer

$4.19M

@ $192.71 · 2025-10-17

TAUBERT JENNIFER L

Officer

$10.04M

@ $177.81 · 2025-09-04

DUATO JOAQUIN BOIX

Chief Executive Officer

$22.55M

@ $179.21 · 2025-08-22

WOLK JOSEPH J

Chief Financial Officer

$2.98M

@ $176.91 · 2025-08-15

REED JOHN C

Officer

$3.13M

@ $163.55 · 2025-07-17

DECKER ROBERT J

Officer

$1.16M

@ $165.88 · 2025-02-25

SCHMID TIMOTHY

Officer

$62,928

@ $156.15 · 2025-02-18

WOLK JOSEPH J

Chief Financial Officer

$2.00M

@ $153.89 · 2025-02-07

DECKER ROBERT J

Officer

$930,113

@ $165.06 · 2024-08-30

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

😨Fear(36/100)

"Market is pessimistic — investigate whether fears are temporary or structural"

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.

JNJ

😐Neutral(59/100)

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

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: Fear (36)

JNJ

⚪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 (59)

View AZO Full Analysis View JNJ Full Analysis