AAP vs. AZO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AAP and AZO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | AAP | AZO |
|---|---|---|
| Company Name | Advance Auto Parts, Inc. | AutoZone, Inc. |
| Country | United States | United States |
| GICS Sector | Consumer Discretionary | Consumer Discretionary |
| GICS Industry | Specialty Retail | Specialty Retail |
| Market Capitalization | 3.57 billion USD | 69.25 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | November 29, 2001 | April 2, 1991 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of AAP and AZO by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | AAP | AZO |
|---|---|---|
| 5-Day Price Return | 5.61% | 0.27% |
| 13-Week Price Return | 20.97% | 7.27% |
| 26-Week Price Return | 34.21% | 21.89% |
| 52-Week Price Return | 16.40% | 30.56% |
| Month-to-Date Return | 12.08% | 9.86% |
| Year-to-Date Return | 25.78% | 29.29% |
| 10-Day Avg. Volume | 2.31M | 0.10M |
| 3-Month Avg. Volume | 2.88M | 0.13M |
| 3-Month Volatility | 125.09% | 22.06% |
| Beta | 1.10 | 0.39 |
Profitability
Return on Equity (TTM)
AAP
-13.03%
Specialty Retail Industry
- Max
- 61.19%
- Q3
- 37.24%
- Median
- 18.81%
- Q1
- 8.92%
- Min
- -13.03%
AAP has a negative Return on Equity of -13.03%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
AZO
249.27%
Specialty Retail Industry
- Max
- 61.19%
- Q3
- 37.24%
- Median
- 18.81%
- Q1
- 8.92%
- Min
- -13.03%
AZO’s Return on Equity of 249.27% is exceptionally high, placing it well beyond the typical range for the Specialty Retail industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Net Profit Margin (TTM)
AAP
-3.31%
Specialty Retail Industry
- Max
- 21.28%
- Q3
- 10.68%
- Median
- 6.08%
- Q1
- 2.43%
- Min
- -4.54%
AAP has a negative Net Profit Margin of -3.31%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
AZO
13.56%
Specialty Retail Industry
- Max
- 21.28%
- Q3
- 10.68%
- Median
- 6.08%
- Q1
- 2.43%
- Min
- -4.54%
A Net Profit Margin of 13.56% places AZO in the upper quartile for the Specialty Retail industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
AAP
-8.97%
Specialty Retail Industry
- Max
- 33.35%
- Q3
- 15.84%
- Median
- 9.34%
- Q1
- 3.83%
- Min
- -8.97%
AAP has a negative Operating Profit Margin of -8.97%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
AZO
19.63%
Specialty Retail Industry
- Max
- 33.35%
- Q3
- 15.84%
- Median
- 9.34%
- Q1
- 3.83%
- Min
- -8.97%
An Operating Profit Margin of 19.63% places AZO in the upper quartile for the Specialty Retail industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AAP | AZO |
|---|---|---|
| Return on Equity (TTM) | -13.03% | 249.27% |
| Return on Assets (TTM) | -2.70% | 14.37% |
| Net Profit Margin (TTM) | -3.31% | 13.56% |
| Operating Profit Margin (TTM) | -8.97% | 19.63% |
| Gross Profit Margin (TTM) | 48.01% | 52.95% |
Financial Strength
Current Ratio (MRQ)
AAP
1.27
Specialty Retail Industry
- Max
- 2.83
- Q3
- 1.89
- Median
- 1.39
- Q1
- 1.11
- Min
- 0.64
AAP’s Current Ratio of 1.27 aligns with the median group of the Specialty Retail industry, indicating that its short-term liquidity is in line with its sector peers.
AZO
0.84
Specialty Retail Industry
- Max
- 2.83
- Q3
- 1.89
- Median
- 1.39
- Q1
- 1.11
- Min
- 0.64
AZO’s Current Ratio of 0.84 falls into the lower quartile for the Specialty Retail industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio (MRQ)
AAP
0.81
Specialty Retail Industry
- Max
- 3.02
- Q3
- 1.57
- Median
- 0.64
- Q1
- 0.20
- Min
- 0.00
AAP’s Debt-to-Equity Ratio of 0.81 is typical for the Specialty Retail industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
AZO
37.81
Specialty Retail Industry
- Max
- 3.02
- Q3
- 1.57
- Median
- 0.64
- Q1
- 0.20
- Min
- 0.00
With a Debt-to-Equity Ratio of 37.81, AZO operates with exceptionally high leverage compared to the Specialty Retail industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
AAP
-7.88
Specialty Retail Industry
- Max
- 48.12
- Q3
- 35.95
- Median
- 14.13
- Q1
- 3.61
- Min
- -36.00
AAP has a negative Interest Coverage Ratio of -7.88. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
AZO
8.39
Specialty Retail Industry
- Max
- 48.12
- Q3
- 35.95
- Median
- 14.13
- Q1
- 3.61
- Min
- -36.00
AZO’s Interest Coverage Ratio of 8.39 is positioned comfortably within the norm for the Specialty Retail industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AAP | AZO |
|---|---|---|
| Current Ratio (MRQ) | 1.27 | 0.84 |
| Quick Ratio (MRQ) | 0.49 | 0.12 |
| Debt-to-Equity Ratio (MRQ) | 0.81 | 37.81 |
| Interest Coverage Ratio (TTM) | -7.88 | 8.39 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
AAP
1.77%
Specialty Retail Industry
- Max
- 6.53%
- Q3
- 2.69%
- Median
- 1.08%
- Q1
- 0.00%
- Min
- 0.00%
AAP’s Dividend Yield of 1.77% is consistent with its peers in the Specialty Retail industry, providing a dividend return that is standard for its sector.
AZO
0.00%
Specialty Retail Industry
- Max
- 6.53%
- Q3
- 2.69%
- Median
- 1.08%
- Q1
- 0.00%
- Min
- 0.00%
AZO currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio (TTM)
AAP
27.48%
Specialty Retail Industry
- Max
- 165.81%
- Q3
- 80.94%
- Median
- 31.61%
- Q1
- 0.00%
- Min
- 0.00%
AAP’s Dividend Payout Ratio of 27.48% is within the typical range for the Specialty Retail industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
AZO
0.00%
Specialty Retail Industry
- Max
- 165.81%
- Q3
- 80.94%
- Median
- 31.61%
- Q1
- 0.00%
- Min
- 0.00%
AZO has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | AAP | AZO |
|---|---|---|
| Dividend Yield (TTM) | 1.77% | 0.00% |
| Dividend Payout Ratio (TTM) | 27.48% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
AAP
--
Specialty Retail Industry
- Max
- 48.56
- Q3
- 29.15
- Median
- 22.00
- Q1
- 15.46
- Min
- 7.95
P/E Ratio data for AAP is currently unavailable.
AZO
27.06
Specialty Retail Industry
- Max
- 48.56
- Q3
- 29.15
- Median
- 22.00
- Q1
- 15.46
- Min
- 7.95
AZO’s P/E Ratio of 27.06 is within the middle range for the Specialty Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
AAP
0.36
Specialty Retail Industry
- Max
- 5.08
- Q3
- 2.69
- Median
- 1.23
- Q1
- 0.48
- Min
- 0.09
In the lower quartile for the Specialty Retail industry, AAP’s P/S Ratio of 0.36 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
AZO
3.67
Specialty Retail Industry
- Max
- 5.08
- Q3
- 2.69
- Median
- 1.23
- Q1
- 0.48
- Min
- 0.09
AZO’s P/S Ratio of 3.67 is in the upper echelon for the Specialty Retail industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
AAP
0.89
Specialty Retail Industry
- Max
- 16.93
- Q3
- 7.98
- Median
- 3.69
- Q1
- 1.79
- Min
- 0.21
AAP’s P/B Ratio of 0.89 is in the lower quartile for the Specialty Retail industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
AZO
94.97
Specialty Retail Industry
- Max
- 16.93
- Q3
- 7.98
- Median
- 3.69
- Q1
- 1.79
- Min
- 0.21
At 94.97, AZO’s P/B Ratio is at an extreme premium to the Specialty Retail industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | AAP | AZO |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | -- | 27.06 |
| Price-to-Sales Ratio (TTM) | 0.36 | 3.67 |
| Price-to-Book Ratio (MRQ) | 0.89 | 94.97 |
| Price-to-Free Cash Flow Ratio (TTM) | 12.28 | 34.64 |