Critical Analysis: Kits Eyecare (OTCMKTS:KTYCF) versus AutoZone (NYSE:AZO)

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

Profitability

This table compares Kits Eyecare and AutoZone’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kits Eyecare	N/A	N/A	N/A
AutoZone	14.40%	-52.99%	15.46%

Analyst Ratings

This is a summary of recent ratings and target prices for Kits Eyecare and AutoZone, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kits Eyecare	0	0	0	0	N/A
AutoZone	1	2	14	4	3.00

AutoZone has a consensus price target of $3,202.71, indicating a potential upside of 2.29%. Given AutoZone’s higher possible upside, analysts plainly believe AutoZone is more favorable than Kits Eyecare.

Insider & Institutional Ownership

92.7% of AutoZone shares are owned by institutional investors. 2.5% of AutoZone shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Kits Eyecare and AutoZone”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kits Eyecare	N/A	N/A	N/A	N/A	N/A
AutoZone	$18.49 billion	2.89	$2.66 billion	$144.59	21.65

AutoZone has higher revenue and earnings than Kits Eyecare.

Summary

AutoZone beats Kits Eyecare on 8 of the 9 factors compared between the two stocks.

About Kits Eyecare

Kits Eyecare Ltd. operates a digital eyecare platform in the United States and Canada. It manufactures progressive and contact lenses, eyeglasses, and frames under the KITS brand, as well as distributes eyewear products of various brands. The company operates through a network of optical e-commerce websites, including KITS.com, KITS.ca, OptiContacts.com, and ContactsExpress.ca. Kits Eyecare Ltd. was founded in 2002 and is headquartered in Vancouver, Canada.

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.