Advance Auto Parts Inc (AAP)vsAutoZone Inc (AZO)
AAP
Advance Auto Parts Inc
$55.42
+1.65%
CONSUMER CYCLICAL · Cap: $3.67B
AZO
AutoZone Inc
$3,116.43
+1.12%
CONSUMER CYCLICAL · Cap: $50.83B
Smart Verdict
WallStSmart Research — data-driven comparison
AutoZone Inc generates 132% more annual revenue ($19.99B vs $8.63B). AZO leads profitability with a 12.4% profit margin vs 0.5%. AZO appears more attractively valued with a PEG of 1.41. AZO earns a higher WallStSmart Score of 53/100 (C-).
AAP
Hold47
out of 100
Grade: D+
AZO
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+31.5%
Fair Value
$87.04
Current Price
$55.42
$31.62 discount
Margin of Safety
-86.4%
Fair Value
$2004.08
Current Price
$3116.43
$1112.35 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Conservative balance sheet, low leverage
Large-cap with strong market position
Areas to Watch
Expensive relative to growth rate
1.2% revenue growth
Distress zone — elevated risk
ROE of 2.0% — below average capital efficiency
ROE of 0.0% — below average capital efficiency
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : AAP
The strongest argument for AAP centers on Price/Book.
Bull Case : AZO
The strongest argument for AZO centers on Debt/Equity, Market Cap. PEG of 1.41 suggests the stock is reasonably priced for its growth.
Bear Case : AAP
The primary concerns for AAP are PEG Ratio, Revenue Growth, Altman Z-Score. A P/E of 54.3x leaves little room for execution misses. Debt-to-equity of 2.36 is elevated, increasing financial risk.
Bear Case : AZO
The primary concerns for AZO are Return on Equity, Altman Z-Score.
Key Dynamics to Monitor
AAP carries more volatility with a beta of 1.06 — expect wider price swings.
AZO is growing revenue faster at 8.4% — sustainability is the question.
AZO generates stronger free cash flow (456M), providing more financial flexibility.
Monitor AUTO PARTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AZO scores higher overall (53/100 vs 47/100). AAP offers better value entry with a 31.5% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Advance Auto Parts Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
Advance Auto Parts, Inc. (Advance) is an American automotive aftermarket parts provider. Headquartered in Raleigh, North Carolina, it serves both professional installer and do-it-yourself (DIY) customers.
Visit Website →AutoZone Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
AutoZone, Inc. is an American retailer of aftermarket automotive parts and accessories, the largest in the United States.
Visit Website →Compare with Other AUTO PARTS Stocks
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