AAP vs. TSCO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AAP and TSCO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
TSCO’s market capitalization of 28.96 billion USD is significantly greater than AAP’s 3.09 billion USD, highlighting its more substantial market valuation.
With betas of 1.09 for AAP and 0.73 for TSCO, both stocks show similar sensitivity to overall market movements.
| Symbol | AAP | TSCO |
|---|---|---|
| Company Name | Advance Auto Parts, Inc. | Tractor Supply Company |
| Country | US | US |
| Sector | Consumer Cyclical | Consumer Cyclical |
| Industry | Specialty Retail | Specialty Retail |
| CEO | Shane M. O'Kelly | Harry A. Lawton III |
| Price | 51.62 USD | 54.63 USD |
| Market Cap | 3.09 billion USD | 28.96 billion USD |
| Beta | 1.09 | 0.73 |
| Exchange | NYSE | NASDAQ |
| IPO Date | November 29, 2001 | February 17, 1994 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AAP and TSCO 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.
Profitability
Return on Equity
AAP
-14.70%
Specialty Retail Industry
- Max
- 70.52%
- Q3
- 29.03%
- Median
- 10.90%
- Q1
- -7.86%
- Min
- -57.43%
AAP has a negative Return on Equity of -14.70%. 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.
TSCO
47.56%
Specialty Retail Industry
- Max
- 70.52%
- Q3
- 29.03%
- Median
- 10.90%
- Q1
- -7.86%
- Min
- -57.43%
In the upper quartile for the Specialty Retail industry, TSCO’s Return on Equity of 47.56% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
AAP
-8.92%
Specialty Retail Industry
- Max
- 29.46%
- Q3
- 13.75%
- Median
- 8.05%
- Q1
- 0.80%
- Min
- -17.95%
AAP has a negative Return on Invested Capital of -8.92%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
TSCO
13.81%
Specialty Retail Industry
- Max
- 29.46%
- Q3
- 13.75%
- Median
- 8.05%
- Q1
- 0.80%
- Min
- -17.95%
In the upper quartile for the Specialty Retail industry, TSCO’s Return on Invested Capital of 13.81% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
AAP
-3.74%
Specialty Retail Industry
- Max
- 19.78%
- Q3
- 8.49%
- Median
- 3.43%
- Q1
- -0.69%
- Min
- -9.88%
AAP has a negative Net Profit Margin of -3.74%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
TSCO
7.24%
Specialty Retail Industry
- Max
- 19.78%
- Q3
- 8.49%
- Median
- 3.43%
- Q1
- -0.69%
- Min
- -9.88%
TSCO’s Net Profit Margin of 7.24% is aligned with the median group of its peers in the Specialty Retail industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
AAP
-9.34%
Specialty Retail Industry
- Max
- 24.47%
- Q3
- 11.10%
- Median
- 5.85%
- Q1
- 0.66%
- Min
- -12.62%
AAP has a negative Operating Profit Margin of -9.34%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
TSCO
9.72%
Specialty Retail Industry
- Max
- 24.47%
- Q3
- 11.10%
- Median
- 5.85%
- Q1
- 0.66%
- Min
- -12.62%
TSCO’s Operating Profit Margin of 9.72% is around the midpoint for the Specialty Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AAP | TSCO |
|---|---|---|
| Return on Equity (TTM) | -14.70% | 47.56% |
| Return on Assets (TTM) | -3.31% | 10.42% |
| Return on Invested Capital (TTM) | -8.92% | 13.81% |
| Net Profit Margin (TTM) | -3.74% | 7.24% |
| Operating Profit Margin (TTM) | -9.34% | 9.72% |
| Gross Profit Margin (TTM) | 36.96% | 34.83% |
Financial Strength
Current Ratio
AAP
1.27
Specialty Retail Industry
- Max
- 3.24
- Q3
- 1.99
- Median
- 1.42
- Q1
- 1.02
- Min
- 0.54
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.
TSCO
1.41
Specialty Retail Industry
- Max
- 3.24
- Q3
- 1.99
- Median
- 1.42
- Q1
- 1.02
- Min
- 0.54
TSCO’s Current Ratio of 1.41 aligns with the median group of the Specialty Retail industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
AAP
1.67
Specialty Retail Industry
- Max
- 2.72
- Q3
- 1.42
- Median
- 0.87
- Q1
- 0.35
- Min
- 0.01
AAP’s leverage is in the upper quartile of the Specialty Retail industry, with a Debt-to-Equity Ratio of 1.67. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
TSCO
2.57
Specialty Retail Industry
- Max
- 2.72
- Q3
- 1.42
- Median
- 0.87
- Q1
- 0.35
- Min
- 0.01
TSCO’s leverage is in the upper quartile of the Specialty Retail industry, with a Debt-to-Equity Ratio of 2.57. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio
AAP
-10.54
Specialty Retail Industry
- Max
- 37.34
- Q3
- 17.19
- Median
- 4.28
- Q1
- 0.11
- Min
- -23.60
AAP has a negative Interest Coverage Ratio of -10.54. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
TSCO
23.32
Specialty Retail Industry
- Max
- 37.34
- Q3
- 17.19
- Median
- 4.28
- Q1
- 0.11
- Min
- -23.60
TSCO’s Interest Coverage Ratio of 23.32 is in the upper quartile for the Specialty Retail industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AAP | TSCO |
|---|---|---|
| Current Ratio (TTM) | 1.27 | 1.41 |
| Quick Ratio (TTM) | 0.49 | 0.17 |
| Debt-to-Equity Ratio (TTM) | 1.67 | 2.57 |
| Debt-to-Asset Ratio (TTM) | 0.35 | 0.55 |
| Net Debt-to-EBITDA Ratio (TTM) | -3.78 | 2.89 |
| Interest Coverage Ratio (TTM) | -10.54 | 23.32 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AAP and TSCO. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AAP
1.94%
Specialty Retail Industry
- Max
- 5.54%
- Q3
- 1.52%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.94%, AAP offers a more attractive income stream than most of its peers in the Specialty Retail industry, signaling a strong commitment to shareholder returns.
TSCO
1.65%
Specialty Retail Industry
- Max
- 5.54%
- Q3
- 1.52%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.65%, TSCO offers a more attractive income stream than most of its peers in the Specialty Retail industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
AAP
-17.02%
Specialty Retail Industry
- Max
- 177.64%
- Q3
- 9.49%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AAP has a negative Dividend Payout Ratio of -17.02%. This typically means the company paid a dividend despite reporting a net loss, a situation that may signal financial instability.
TSCO
43.98%
Specialty Retail Industry
- Max
- 177.64%
- Q3
- 9.49%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TSCO’s Dividend Payout Ratio of 43.98% is in the upper quartile for the Specialty Retail industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | AAP | TSCO |
|---|---|---|
| Dividend Yield (TTM) | 1.94% | 1.65% |
| Dividend Payout Ratio (TTM) | -17.02% | 43.98% |
Valuation
Price-to-Earnings Ratio
AAP
-8.80
Specialty Retail Industry
- Max
- 81.45
- Q3
- 42.51
- Median
- 25.40
- Q1
- 12.72
- Min
- 1.88
AAP has a negative P/E Ratio of -8.80. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
TSCO
26.84
Specialty Retail Industry
- Max
- 81.45
- Q3
- 42.51
- Median
- 25.40
- Q1
- 12.72
- Min
- 1.88
TSCO’s P/E Ratio of 26.84 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.
Forward P/E to Growth Ratio
AAP
-0.19
Specialty Retail Industry
- Max
- 5.90
- Q3
- 2.79
- Median
- 1.76
- Q1
- 0.69
- Min
- 0.00
AAP has a negative Forward PEG Ratio of -0.19. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
TSCO
2.64
Specialty Retail Industry
- Max
- 5.90
- Q3
- 2.79
- Median
- 1.76
- Q1
- 0.69
- Min
- 0.00
TSCO’s Forward PEG Ratio of 2.64 is within the middle range of its peers in the Specialty Retail industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
Price-to-Sales Ratio
AAP
0.33
Specialty Retail Industry
- Max
- 5.26
- Q3
- 2.60
- Median
- 1.29
- Q1
- 0.41
- Min
- 0.06
In the lower quartile for the Specialty Retail industry, AAP’s P/S Ratio of 0.33 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.
TSCO
1.94
Specialty Retail Industry
- Max
- 5.26
- Q3
- 2.60
- Median
- 1.29
- Q1
- 0.41
- Min
- 0.06
TSCO’s P/S Ratio of 1.94 aligns with the market consensus for the Specialty Retail industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
AAP
1.41
Specialty Retail Industry
- Max
- 12.73
- Q3
- 6.96
- Median
- 3.28
- Q1
- 1.42
- Min
- 0.24
AAP’s P/B Ratio of 1.41 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.
TSCO
12.98
Specialty Retail Industry
- Max
- 12.73
- Q3
- 6.96
- Median
- 3.28
- Q1
- 1.42
- Min
- 0.24
At 12.98, TSCO’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 | TSCO |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -8.80 | 26.84 |
| Forward PEG Ratio (TTM) | -0.19 | 2.64 |
| Price-to-Sales Ratio (P/S, TTM) | 0.33 | 1.94 |
| Price-to-Book Ratio (P/B, TTM) | 1.41 | 12.98 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -12.48 | 47.32 |
| EV-to-EBITDA (TTM) | -9.63 | 18.00 |
| EV-to-Sales (TTM) | 0.54 | 2.31 |