Advance Auto Parts Inc (AAP)vsThe Home Depot Inc (HD)
AAP
Advance Auto Parts Inc
$55.42
+1.65%
CONSUMER CYCLICAL · Cap: $3.67B
HD
The Home Depot Inc
$326.62
-0.66%
CONSUMER CYCLICAL · Cap: $336.21B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 1830% more annual revenue ($166.59B vs $8.63B). HD leads profitability with a 8.4% profit margin vs 0.5%. AAP appears more attractively valued with a PEG of 1.66. HD earns a higher WallStSmart Score of 51/100 (C-).
AAP
Hold47
out of 100
Grade: D+
HD
Buy51
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
-57.4%
Fair Value
$212.44
Current Price
$326.62
$114.18 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Safe zone — low bankruptcy risk
Generating 5.2B in free cash flow
Areas to Watch
Expensive relative to growth rate
1.2% revenue growth
Distress zone — elevated risk
ROE of 2.0% — below average capital efficiency
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Trading at 23.5x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : AAP
The strongest argument for AAP centers on Price/Book.
Bull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
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 : HD
The primary concerns for HD are PEG Ratio, Revenue Growth, Piotroski F-Score. Debt-to-equity of 4.18 is elevated, increasing financial risk.
Key Dynamics to Monitor
AAP carries more volatility with a beta of 1.06 — expect wider price swings.
HD is growing revenue faster at 4.8% — sustainability is the question.
HD generates stronger free cash flow (5.2B), providing more financial flexibility.
Monitor AUTO PARTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HD scores higher overall (51/100 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 →The Home Depot Inc
CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA
The Home Depot, Inc., commonly known as Home Depot, is the largest home improvement retailer in the United States, supplying tools, construction products, and services. The company is headquartered in incorporated Cobb County, Georgia, with an Atlanta mailing address.
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