December 13, 2006
Today, fellow Fool Ryan Fuhrmann and I are going to discuss the merits of auto-parts retailer AutoZone (NYSE: AZO ) . I can tell you right now that we look at some of the same things in very different ways.
One of the reasons Ryan thinks competitors like O'Reilly Automotive (Nasdaq: ORLY ) and Advance Auto Parts (NYSE: AAP ) may be better investments is that they have better growth prospects. I, on the other hand, will let you know what growth is not such an important part of the investment thesis.
Ryan is rightly worried about AutoZone's level of debt. I'll let you in on why the debt levels at CSK Auto (NYSE: CAO ) and Pep Boys (NYSE: PBY ) should frighten you even more.
Lastly, I point to a number of noted value investors who own lots of shares of AutoZone, while Ryan tells you about a great one who recently sold his shares.
We're racing for pink slips here, and you're going to be the judges at the finish line waiting to see who crosses first. That's because after you read the arguments, we're providing you with a link to cast your vote on which argument you find the most compelling.
With that, our cars are pulling up to the staging area with tachometers red-lined, waiting to pop the clutch.
On your mark, get set . Duel!
AutoZone is aMotley Fool Inside Valuerecommendation.
Retail editor and Inside Value team member David Meier is ranked 284 out of 17,077 in CAPS and does not own shares in any of the companies mentioned. You can view his TMF profile here. The Fool takes its disclosure policy very seriously.