Advance Auto Parts, Inc. (AAP) vs Atmus Filtration Technologies Inc. (ATMU)

Advance Auto Parts, Inc. and Atmus Filtration Technologies Inc. are both Auto Parts companies. Atmus Filtration Technologies Inc. is the larger, with a market value of $3.7B against $2.5B — 1.5× the size. Atmus Filtration Technologies Inc. trades at the lower P/E: 17.0× against 30.0×. Atmus Filtration Technologies Inc. grew revenue faster over the last twelve months: 13.1% against −1.32%. Atmus Filtration Technologies Inc. has the higher net margin (11.3% vs 0.97%) and the higher return on invested capital (17.1% vs 5.84%). Across the 22 metrics below, Atmus Filtration Technologies Inc. leads on 15 and Advance Auto Parts, Inc. on 7.

Valuation

Metric AAP ATMU Auto Parts median
P/E 30.02 17.03 17.92
P/S 0.29 1.92 0.64
P/B 1.11 8.04 1.15
Price to free cash flow 108.93 19.20 12.82
EV/EBITDA 6.27 12.05 7.66
EV/Sales 0.36 2.31 0.73
Earnings yield 3.33% 5.87% 2.73%
Free cash flow yield 0.92% 5.21% 3.47%

Profitability

Metric AAP ATMU Auto Parts median
Gross margin 44.69% 28.82% 22.64%
Operating margin 2.74% 17.16% 3.67%
Net margin 0.97% 11.32% 1.68%
Free cash flow margin 0.29% 10.02% 2.31%
Return on equity 3.77% 55.79% 2.35%
Return on assets 0.74% 13.43% 0.89%
Return on invested capital 5.84% 17.06% 4.55%

Growth

Metric AAP ATMU Auto Parts median
Revenue growth (TTM) (1.32%) 13.05% 5.00%
EPS growth (last fiscal year) 113.01% 12.61% —
Revenue growth, 5-year CAGR (3.17%) 7.44% 7.78%
Net income growth, 5-year CAGR (38.32%) 7.75% 0.00%

Health

Metric AAP ATMU Auto Parts median
Debt to equity 1.50 2.20 0.38
Current ratio 1.75 2.65 1.78
Net debt to EBITDA 1.26 1.01 1.26

Dividend

Metric AAP ATMU Auto Parts median
Dividend yield 2.70% — 2.37%
Payout ratio 0.78 — 0.00

Size

Metric AAP ATMU Auto Parts median
Market cap 2.50b 3.65b 914.31m

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