AZO vs MUSA

For growth investors, AutoZone, Inc.

(AZO) is the stronger pick with 2. 4% revenue growth year-over-year, versus -4. 2% for Murphy USA Inc. (MUSA). Murphy USA Inc. (MUSA) offers the better valuation at 24. 1x trailing P/E (19. 8x forward), making it the more compelling value choice. Analysts rate AutoZone, Inc. (AZO) a "Buy" — based on 45 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Murphy USA Inc.

(MUSA) is the cheapest at 24. 1x versus AutoZone, Inc. at 24. 5x. On forward P/E, Murphy USA Inc. is actually cheaper at 19. 8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Murphy USA Inc. wins at 1. 53x versus AutoZone, Inc. 's 1. 59x — a reasonable growth-adjusted valuation.

Over the past 5 years, Murphy USA Inc.

(MUSA) delivered a total return of +318. 2%, compared to +135. 9% for AutoZone, Inc. (AZO). Over 10 years, the gap is even starker: MUSA returned +803. 3% versus AZO's +353. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Murphy USA Inc.

(MUSA) is the lower-risk stock at -0. 23β versus AutoZone, Inc. 's 0. 22β — meaning AZO is approximately -194% more volatile than MUSA relative to the S&P 500.

By revenue growth (latest reported year), AutoZone, Inc.

(AZO) is pulling ahead at 2. 4% versus -4. 2% for Murphy USA Inc. (MUSA). On earnings-per-share growth, the picture is similar: Murphy USA Inc. grew EPS -0. 0% year-over-year, compared to -3. 1% for AutoZone, Inc.. Over a 3-year CAGR, AZO leads at 5. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

AutoZone, Inc.

(AZO) is the more profitable company, earning 13. 2% net margin versus 2. 4% for Murphy USA Inc. — meaning it keeps 13. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AZO leads at 19. 1% versus 3. 8% for MUSA. At the gross margin level — before operating expenses — AZO leads at 52. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Murphy USA Inc. (MUSA) is the more undervalued stock at a PEG of 1. 53x versus AutoZone, Inc. 's 1. 59x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Murphy USA Inc. (MUSA) trades at 19. 8x forward P/E versus 23. 9x for AutoZone, Inc. — 4. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AZO: 19. 2% to $4235. 71.

In this comparison, MUSA (0.

4% yield) pays a dividend. AZO does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Murphy USA Inc.

(MUSA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0. 23), +803. 3% 10Y return). Both have compounded well over 10 years (MUSA: +803. 3%, AZO: +353. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.