WallStSmart

Advance Auto Parts Inc (AAP)vsModine Manufacturing Company (MOD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Advance Auto Parts Inc generates 199% more annual revenue ($8.60B vs $2.87B). MOD leads profitability with a 3.4% profit margin vs 0.5%. MOD appears more attractively valued with a PEG of 1.12. MOD earns a higher WallStSmart Score of 51/100 (C-).

AAP

Hold

47

out of 100

Grade: D+

Growth: 2.0Profit: 4.0Value: 6.0Quality: 5.0
Piotroski: 4/9Altman Z: 1.68

MOD

Buy

51

out of 100

Grade: C-

Growth: 6.0Profit: 6.0Value: 4.3Quality: 7.8
Piotroski: 6/9Altman Z: 3.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AAPUndervalued (+48.9%)

Margin of Safety

+48.9%

Fair Value

$116.76

Current Price

$56.15

$60.61 discount

UndervaluedFair: $116.76Overvalued

Intrinsic value data unavailable for MOD.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AAP1 strengths · Avg: 8.0/10
Price/BookValuation
1.5x8/10

Reasonable price relative to book value

MOD2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
30.5%10/10

Revenue surging 30.5% year-over-year

Altman Z-ScoreHealth
3.2610/10

Safe zone — low bankruptcy risk

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%

MOD4 concerns · Avg: 2.8/10
Price/BookValuation
12.8x4/10

Trading at 12.8x book value

Profit MarginProfitability
3.4%3/10

3.4% margin — thin

P/E RatioValuation
146.6x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-3.5%2/10

Earnings declined 3.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : AAP

The strongest argument for AAP centers on Price/Book. PEG of 1.47 suggests the stock is reasonably priced for its growth.

Bull Case : MOD

The strongest argument for MOD centers on Revenue Growth, Altman Z-Score. Revenue growth of 30.5% demonstrates continued momentum. PEG of 1.12 suggests the stock is reasonably priced for its growth.

Bear Case : AAP

The primary concerns for AAP are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 51.4x leaves little room for execution misses. Debt-to-equity of 2.38 is elevated, increasing financial risk.

Bear Case : MOD

The primary concerns for MOD are Price/Book, Profit Margin, P/E Ratio. A P/E of 146.6x leaves little room for execution misses. Thin 3.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

AAP profiles as a value stock while MOD is a hypergrowth play — different risk/reward profiles.

MOD carries more volatility with a beta of 1.66 — expect wider price swings.

MOD is growing revenue faster at 30.5% — sustainability is the question.

MOD generates stronger free cash flow (-17M), providing more financial flexibility.

Bottom Line

MOD scores higher overall (51/100 vs 47/100) and 30.5% revenue growth. AAP offers better value entry with a 48.9% 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.

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Modine Manufacturing Company

CONSUMER CYCLICAL · AUTO PARTS · USA

Modine Manufacturing Company provides heat transfer systems and heat transfer components designed for use in on-highway and off-highway original equipment manufacturer (OEM) vehicular applications. The company is headquartered in Racine, Wisconsin.

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