Advance Auto Parts vs AutoZone

Advance Auto Parts and AutoZone are two major competitors in the automotive aftermarket retail industry. While both companies have shown strong performances in recent years, there are key differences in their strategies and financials that warrant a closer look. Advance Auto Parts has slightly outperformed AutoZone in terms of stock performance, but both companies face similar challenges such as changing consumer trends and online competition. Investors should carefully consider these factors when making investment decisions in the automotive retail sector.

Advance Auto Parts or AutoZone?

When comparing Advance Auto Parts and AutoZone, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Advance Auto Parts and AutoZone.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Advance Auto Parts has a dividend yield of 3.17%, while AutoZone has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Advance Auto Parts reports a 5-year dividend growth of 52.81% year and a payout ratio of 4816.25%. On the other hand, AutoZone reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Advance Auto Parts P/E ratio at 1893.58 and AutoZone's P/E ratio at 20.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Advance Auto Parts P/B ratio is 0.90 while AutoZone's P/B ratio is -11.35.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Advance Auto Parts has seen a 5-year revenue growth of 0.46%, while AutoZone's is 1.27%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Advance Auto Parts's ROE at 0.05% and AutoZone's ROE at -54.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $39.30 for Advance Auto Parts and $3076.75 for AutoZone. Over the past year, Advance Auto Parts's prices ranged from $36.40 to $88.56, with a yearly change of 143.30%. AutoZone's prices fluctuated between $2375.35 and $3256.37, with a yearly change of 37.09%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.