Advance Auto Parts, Inc. (AAP) vs Garrett Motion Inc. (GTX)

Advance Auto Parts, Inc. and Garrett Motion Inc. are both Auto Parts companies. Garrett Motion Inc. is the larger, with a market value of $4.6B against $2.7B — 1.7× the size. Garrett Motion Inc. trades at the lower P/E: 13.1× against 32.0×. Garrett Motion Inc. grew revenue faster over the last twelve months: 8.47% against −1.32%. Garrett Motion Inc. has the higher net margin (9.51% vs 0.97%) and the higher return on invested capital (62.5% vs 5.84%). Both pay a dividend; Advance Auto Parts, Inc. yields more (2.25% vs 1.31%). Across the 22 metrics below, Garrett Motion Inc. leads on 13 and Advance Auto Parts, Inc. on 9.

Valuation

Metric AAP GTX Auto Parts median
P/E 31.98 13.14 17.38
P/S 0.31 1.22 0.50
P/B 1.19 n/m 1.13
Price to free cash flow 116.03 12.54 12.54
EV/EBITDA 6.60 9.01 7.70
EV/Sales 0.38 1.54 0.70
Earnings yield 3.13% 7.61% 3.07%
Free cash flow yield 0.86% 7.98% 3.19%

Profitability

Metric AAP GTX Auto Parts median
Gross margin 44.69% 20.75% 22.64%
Operating margin 2.74% 14.17% 3.67%
Net margin 0.97% 9.51% 1.68%
Free cash flow margin 0.29% 9.72% 2.31%
Return on equity 3.77% (48.02%) 2.35%
Return on assets 0.74% 14.64% 0.89%
Return on invested capital 5.84% 62.50% 4.55%

Growth

Metric AAP GTX Auto Parts median
Revenue growth (TTM) (1.32%) 8.47% 5.00%
EPS growth (last fiscal year) 113.01% 20.63% 5.56%
Revenue growth, 5-year CAGR (3.17%) 3.39% 7.71%
Net income growth, 5-year CAGR (38.32%) 31.12% 0.00%

Health

Metric AAP GTX Auto Parts median
Debt to equity 1.50 (2.03) 0.44
Current ratio 1.75 1.00 1.78
Net debt to EBITDA 1.26 2.11 1.26

Dividend

Metric AAP GTX Auto Parts median
Dividend yield 2.25% 1.31% 2.02%
Payout ratio 0.73 0.18 0.34

Size

Metric AAP GTX Auto Parts median
Market cap 2.65b 4.56b 915.23m

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