AutoZone vs Advance Auto Parts Which Is Stronger?

AutoZone and Advance Auto Parts are two major players in the automotive aftermarket industry, and their stocks have been closely followed by investors. AutoZone, a leading retailer of automotive parts and accessories, has shown consistent growth over the years with a strong market presence and profitability. On the other hand, Advance Auto Parts has also seen steady growth but faces increasing competition in the rapidly evolving industry. Both companies have unique strengths and challenges that make for an interesting comparison for investors looking to enter the automotive retail sector.

AutoZone or Advance Auto Parts?

When comparing AutoZone and Advance Auto Parts, 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 AutoZone and Advance Auto Parts.

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. AutoZone has a dividend yield of -%, while Advance Auto Parts has a dividend yield of 3.03%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AutoZone reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Advance Auto Parts reports a 5-year dividend growth of 52.81% year and a payout ratio of 244.22%.

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 AutoZone P/E ratio at 20.48 and Advance Auto Parts's P/E ratio at 100.31. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AutoZone P/B ratio is -11.48 while Advance Auto Parts's P/B ratio is 0.95.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AutoZone has seen a 5-year revenue growth of 1.27%, while Advance Auto Parts's is 0.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AutoZone's ROE at -54.23% and Advance Auto Parts's ROE at 0.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $3131.22 for AutoZone and $41.09 for Advance Auto Parts. Over the past year, AutoZone's prices ranged from $2510.00 to $3256.37, with a yearly change of 29.74%. Advance Auto Parts's prices fluctuated between $35.59 and $88.56, with a yearly change of 148.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.