WallStSmart

Advance Auto Parts Inc (AAP)vsAutoZone Inc (AZO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

AutoZone Inc generates 124% more annual revenue ($19.29B vs $8.60B). AZO leads profitability with a 12.8% profit margin vs 0.5%. AAP appears more attractively valued with a PEG of 0.64. AAP earns a higher WallStSmart Score of 49/100 (D+).

AAP

Hold

49

out of 100

Grade: D+

Growth: 2.0Profit: 4.0Value: 7.3Quality: 5.0
Piotroski: 4/9Altman Z: 1.68

AZO

Hold

47

out of 100

Grade: D+

Growth: 4.7Profit: 6.5Value: 7.3Quality: 5.5
Piotroski: 4/9Altman Z: 1.23
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AAPSignificantly Overvalued (-676.4%)

Margin of Safety

-676.4%

Fair Value

$7.68

Current Price

$52.73

$45.05 premium

UndervaluedFair: $7.68Overvalued
AZOSignificantly Overvalued (-284.5%)

Margin of Safety

-284.5%

Fair Value

$971.52

Current Price

$3386.14

$2414.62 premium

UndervaluedFair: $971.52Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AAP2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

PEG RatioValuation
0.648/10

Growing faster than its price suggests

AZO2 strengths · Avg: 9.5/10
Debt/EquityHealth
-3.7310/10

Conservative balance sheet, low leverage

Market CapQuality
$55.27B9/10

Large-cap with strong market position

Areas to Watch

AAP4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.684/10

Distress zone — elevated risk

Return on EquityProfitability
3.1%3/10

ROE of 3.1% — below average capital efficiency

Profit MarginProfitability
0.5%3/10

0.5% margin — thin

Operating MarginProfitability
3.4%3/10

Operating margin of 3.4%

AZO4 concerns · Avg: 2.8/10
PEG RatioValuation
1.824/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

EPS GrowthGrowth
-2.3%2/10

Earnings declined 2.3%

Altman Z-ScoreHealth
1.232/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : AAP

The strongest argument for AAP centers on Price/Book, PEG Ratio. PEG of 0.64 suggests the stock is reasonably priced for its growth.

Bull Case : AZO

The strongest argument for AZO centers on Debt/Equity, Market Cap.

Bear Case : AAP

The primary concerns for AAP are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 45.0x leaves little room for execution misses. Debt-to-equity of 2.38 is elevated, increasing financial risk.

Bear Case : AZO

The primary concerns for AZO are PEG Ratio, Return on Equity, EPS Growth.

Key Dynamics to Monitor

AAP carries more volatility with a beta of 1.11 — expect wider price swings.

AZO is growing revenue faster at 8.2% — sustainability is the question.

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

Bottom Line

AAP scores higher overall (49/100 vs 47/100). 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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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 →

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