Advance Auto Parts, Inc. (AAP) vs The Goodyear Tire & Rubber Company (GT)

Advance Auto Parts, Inc. and The Goodyear Tire & Rubber Company are both Auto Parts companies. Advance Auto Parts, Inc. is the larger, with a market value of $2.5B against $1.5B — 1.7× the size. The Goodyear Tire & Rubber Company has negative trailing earnings, so its P/E is not meaningful; Advance Auto Parts, Inc. trades at 30.0×. Advance Auto Parts, Inc. grew revenue faster over the last twelve months: −1.32% against −4.31%. Advance Auto Parts, Inc. has the higher net margin (0.97% vs −14.4%) and the higher return on invested capital (5.84% vs −1.23%). Across the 21 metrics below, Advance Auto Parts, Inc. leads on 13 and The Goodyear Tire & Rubber Company on 8.

Valuation

Metric AAP GT Auto Parts median
P/E 30.02 n/m 17.92
P/S 0.29 0.08 0.64
P/B 1.11 0.49 1.15
Price to free cash flow 108.93 2.22 12.82
EV/EBITDA 6.27 5.01 7.66
EV/Sales 0.36 0.42 0.73
Earnings yield 3.33% (172.12%) 2.73%
Free cash flow yield 0.92% 45.12% 3.47%

Profitability

Metric AAP GT Auto Parts median
Gross margin 44.69% 18.34% 22.64%
Operating margin 2.74% (1.00%) 3.67%
Net margin 0.97% (14.37%) 1.68%
Free cash flow margin 0.29% 3.78% 2.31%
Return on equity 3.77% (61.31%) 2.35%
Return on assets 0.74% (12.43%) 0.89%
Return on invested capital 5.84% (1.23%) 4.55%

Growth

Metric AAP GT Auto Parts median
Revenue growth (TTM) (1.32%) (4.31%) 5.00%
EPS growth (last fiscal year) 113.01% (5,030.04%) —
Revenue growth, 5-year CAGR (3.17%) 8.21% 7.78%
Net income growth, 5-year CAGR (38.32%) 0.00% 0.00%

Health

Metric AAP GT Auto Parts median
Debt to equity 1.50 2.28 0.38
Current ratio 1.75 1.09 1.78
Net debt to EBITDA 1.26 2.85 1.26

Dividend

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

Size

Metric AAP GT Auto Parts median
Market cap 2.50b 1.47b 914.31m

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