AutoZone vs Valvoline: Which Stock Could Rally?

AZO: AutoZone logo
AZO
AutoZone

Even as AutoZone fell -15% during the past Month, its peer Valvoline may be a better choice. Consistently evaluating alternatives is core to sound investment approach. Valvoline (VVV) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs AutoZone (AZO) stock, suggesting you may be better off investing in VVV

  • VVV’s quarterly revenue growth was 4.2%, vs. AZO’s 0.6%.
  • In addition, its Last 12 Months revenue growth came in at 7.5%, ahead of AZO’s 2.4%.
  • VVV leads on profitability over both periods – LTM margin of 26.0% and 3-year average of 21.8%.

A single stock can be risky, but there is a huge value to a broader, diversified approach we take with the Trefis High Quality Portfolio. That is one way to look at stocks. The Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure.

AZO retailer and distributor of automotive replacement parts and accessories, operating over 6,700 stores across the United States, Mexico, and Brazil. VVV manufactures and supplies engine and automotive maintenance products, operating retail quick-lube locations in the U.S. and Canada under franchised brands.

Valuation & Performance Overview

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  AZO VVV Preferred
     
Valuation      
P/EBIT Ratio 16.6 9.1 VVV
     
Revenue Growth      
Last Quarter 0.6% 4.2% VVV
Last 12 Months 2.4% 7.5% VVV
Last 3 Year Average 5.3% 262.7% VVV
     
Operating Margins      
Last 12 Months 19.1% 26.0% VVV
Last 3 Year Average 19.8% 21.8% VVV
     
Momentum      
Last 3 Year Return 44.3% 8.7% AZO

Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: AZO Revenue Comparison | VVV Revenue Comparison
See more margin details: AZO Operating Income Comparison | VVV Operating Income Comparison
 
But do these numbers tell the full story? Read Buy or Sell VVV Stock to see if Valvoline’s edge holds up under the hood or if AutoZone still has cards to play (see Buy or Sell AZO Stock).

Historical Market Performance

  2020 2021 2022 2023 2024 2025 Total [1] Avg Best
Returns
AZO Return -0% 77% 18% 5% 24% 12% 208% <===
VVV Return 11% 64% -11% 15% -4% -9% 63%  
S&P 500 Return 16% 27% -19% 24% 23% 16% 112%  
Monthly Win Rates [3]
AZO Win Rate 42% 75% 50% 50% 67% 60%   57%  
VVV Win Rate 58% 75% 33% 42% 33% 40%   47%  
S&P 500 Win Rate 58% 75% 42% 67% 75% 70%   64% <===
Max Drawdowns [4]
AZO Max Drawdown -39% -6% -15% -6% -2% -0%   -12% <===
VVV Max Drawdown -57% -2% -32% -10% -8% -13%   -20%  
S&P 500 Max Drawdown -31% -1% -25% -1% -2% -15%   -12%  

[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 11/3/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year

 
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read VVV Dip Buyer Analyses and AZO Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.

Whatever your view on either of these stocks, investing in one or two stocks remains a risky proposition. Instead, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.