WallStSmart

Advance Auto Parts Inc (AAP)vsGenuine Parts Co (GPC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Genuine Parts Co generates 190% more annual revenue ($25.07B vs $8.63B). AAP leads profitability with a 0.5% profit margin vs 0.1%. GPC appears more attractively valued with a PEG of 1.32. GPC earns a higher WallStSmart Score of 49/100 (D+).

AAP

Hold

47

out of 100

Grade: D+

Growth: 2.7Profit: 4.0Value: 6.0Quality: 5.0
Piotroski: 4/9Altman Z: 1.68

GPC

Hold

49

out of 100

Grade: D+

Growth: 4.0Profit: 5.0Value: 3.3Quality: 4.5
Piotroski: 3/9Altman Z: 1.72
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AAPUndervalued (+31.1%)

Margin of Safety

+31.1%

Fair Value

$86.52

Current Price

$57.80

$28.72 discount

UndervaluedFair: $86.52Overvalued
GPCSignificantly Overvalued (-35.5%)

Margin of Safety

-35.5%

Fair Value

$110.18

Current Price

$135.63

$25.45 premium

UndervaluedFair: $110.18Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AAP1 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

GPC0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

AAP4 concerns · Avg: 3.8/10
PEG RatioValuation
1.544/10

Expensive relative to growth rate

Revenue GrowthGrowth
1.2%4/10

1.2% revenue growth

Altman Z-ScoreHealth
1.684/10

Distress zone — elevated risk

Return on EquityProfitability
2.0%3/10

ROE of 2.0% — below average capital efficiency

GPC4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.724/10

Distress zone — elevated risk

Return on EquityProfitability
0.7%3/10

ROE of 0.7% — below average capital efficiency

Profit MarginProfitability
0.1%3/10

0.1% margin — thin

Debt/EquityHealth
1.473/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : AAP

The strongest argument for AAP centers on Price/Book.

Bull Case : GPC

PEG of 1.32 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 49.6x leaves little room for execution misses. Debt-to-equity of 2.36 is elevated, increasing financial risk.

Bear Case : GPC

The primary concerns for GPC are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 497.5x leaves little room for execution misses. Thin 0.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

AAP carries more volatility with a beta of 1.05 — expect wider price swings.

GPC is growing revenue faster at 6.0% — sustainability is the question.

GPC generates stronger free cash flow (292M), providing more financial flexibility.

Monitor AUTO PARTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

GPC scores higher overall (49/100 vs 47/100). AAP offers better value entry with a 31.1% margin of safety. Both earn "Hold" 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.

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Genuine Parts Co

CONSUMER CYCLICAL · AUTO PARTS · USA

Genuine Parts Company (GPC) is an American service organization engaged in the distribution of automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials.

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