Advance Auto Parts Inc (AAP)vsMagna International Inc (MGA)
AAP
Advance Auto Parts Inc
$57.80
-0.21%
CONSUMER CYCLICAL · Cap: $3.39B
MGA
Magna International Inc
$70.36
+3.75%
CONSUMER CYCLICAL · Cap: $18.67B
Smart Verdict
WallStSmart Research — data-driven comparison
Magna International Inc generates 394% more annual revenue ($42.67B vs $8.63B). MGA leads profitability with a 1.8% profit margin vs 0.5%. MGA appears more attractively valued with a PEG of 0.41. MGA earns a higher WallStSmart Score of 64/100 (C+).
AAP
Hold47
out of 100
Grade: D+
MGA
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+31.1%
Fair Value
$86.52
Current Price
$57.80
$28.72 discount
Margin of Safety
+46.7%
Fair Value
$108.40
Current Price
$70.36
$38.04 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 27.8% YoY
Areas to Watch
Expensive relative to growth rate
1.2% revenue growth
Distress zone — elevated risk
ROE of 2.0% — below average capital efficiency
Moderate valuation
3.3% revenue growth
ROE of 5.6% — below average capital efficiency
1.8% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : AAP
The strongest argument for AAP centers on Price/Book.
Bull Case : MGA
The strongest argument for MGA centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.41 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 : MGA
The primary concerns for MGA are P/E Ratio, Revenue Growth, Return on Equity. Thin 1.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
MGA carries more volatility with a beta of 1.86 — expect wider price swings.
MGA is growing revenue faster at 3.3% — sustainability is the question.
MGA generates stronger free cash flow (452M), providing more financial flexibility.
Monitor AUTO PARTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MGA scores higher overall (64/100 vs 47/100). AAP offers better value entry with a 31.1% 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 →Magna International Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
Magna International Inc. designs, designs and manufactures components, assemblies, systems, subsystems and modules for vehicle and light truck original equipment manufacturers worldwide. The company is headquartered in Aurora, Canada.
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