Advance Auto Parts, Inc. (AAP) vs Dorman Products, Inc. (DORM)

Advance Auto Parts, Inc. and Dorman Products, Inc. are both Auto Parts companies. Dorman Products, Inc. is the larger, with a market value of $4.1B against $2.9B — 1.4× the size. Dorman Products, Inc. trades at the lower P/E: 20.6× against 34.5×. Dorman Products, Inc. grew revenue faster over the last twelve months: 2.20% against −1.32%. Dorman Products, Inc. has the higher net margin (9.30% vs 0.97%) and the higher return on invested capital (9.83% vs 5.84%). Across the 22 metrics below, Dorman Products, Inc. leads on 16 and Advance Auto Parts, Inc. on 6.

Valuation

Metric AAP DORM Auto Parts median
P/E 34.47 20.62 14.81
P/S 0.34 1.90 0.55
P/B 1.28 2.63 1.16
Price to free cash flow 125.09 15.30 10.18
EV/EBITDA 7.03 11.04 7.39
EV/Sales 0.40 2.04 0.67
Earnings yield 2.90% 4.85% 3.46%
Free cash flow yield 0.80% 6.54% 2.74%

Profitability

Metric AAP DORM Auto Parts median
Gross margin 44.69% 41.05% 22.13%
Operating margin 2.74% 13.31% 3.50%
Net margin 0.97% 9.30% 1.89%
Free cash flow margin 0.29% 12.39% 1.43%
Return on equity 3.77% 13.26% 0.96%
Return on assets 0.74% 7.91% 1.20%
Return on invested capital 5.84% 9.83% 4.41%

Growth

Metric AAP DORM Auto Parts median
Revenue growth (TTM) (1.32%) 2.20% 4.32%
EPS growth (last fiscal year) 113.01% 8.14% 5.72%
Revenue growth, 5-year CAGR (3.17%) 14.28% 7.66%
Net income growth, 5-year CAGR (38.32%) 13.82% 0.00%

Health

Metric AAP DORM Auto Parts median
Debt to equity 1.50 0.28 0.43
Current ratio 1.75 3.65 1.73
Net debt to EBITDA 1.26 0.95 1.26

Dividend

Metric AAP DORM Auto Parts median
Dividend yield 2.09% — 1.97%
Payout ratio 0.73 — 0.27

Size

Metric AAP DORM Auto Parts median
Market cap 2.91b 4.11b 1.03b

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