AAP vs. AEO, ABG, ZGN, SIG, CPRI, SHAK, WEN, M, RUSHA, and GPI
Should you be buying Advance Auto Parts stock or one of its competitors? The main competitors of Advance Auto Parts include American Eagle Outfitters (AEO), Asbury Automotive Group (ABG), Ermenegildo Zegna (ZGN), Signet Jewelers (SIG), Capri (CPRI), Shake Shack (SHAK), Wendy's (WEN), Macy's (M), Rush Enterprises (RUSHA), and Group 1 Automotive (GPI). These companies are all part of the "retail/wholesale" sector.
Advance Auto Parts (NYSE:AAP) and American Eagle Outfitters (NYSE:AEO) are both mid-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their media sentiment, earnings, risk, valuation, profitability, institutional ownership, dividends, community ranking and analyst recommendations.
American Eagle Outfitters has a net margin of 3.23% compared to Advance Auto Parts' net margin of 0.39%. American Eagle Outfitters' return on equity of 17.76% beat Advance Auto Parts' return on equity.
Advance Auto Parts presently has a consensus target price of $64.56, indicating a potential downside of 14.08%. American Eagle Outfitters has a consensus target price of $21.27, indicating a potential downside of 12.78%. Given American Eagle Outfitters' stronger consensus rating and higher probable upside, analysts clearly believe American Eagle Outfitters is more favorable than Advance Auto Parts.
88.8% of Advance Auto Parts shares are held by institutional investors. Comparatively, 97.3% of American Eagle Outfitters shares are held by institutional investors. 0.4% of Advance Auto Parts shares are held by insiders. Comparatively, 7.5% of American Eagle Outfitters shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
American Eagle Outfitters has lower revenue, but higher earnings than Advance Auto Parts. American Eagle Outfitters is trading at a lower price-to-earnings ratio than Advance Auto Parts, indicating that it is currently the more affordable of the two stocks.
In the previous week, American Eagle Outfitters had 4 more articles in the media than Advance Auto Parts. MarketBeat recorded 7 mentions for American Eagle Outfitters and 3 mentions for Advance Auto Parts. American Eagle Outfitters' average media sentiment score of 0.96 beat Advance Auto Parts' score of 0.90 indicating that American Eagle Outfitters is being referred to more favorably in the news media.
Advance Auto Parts pays an annual dividend of $1.00 per share and has a dividend yield of 1.3%. American Eagle Outfitters pays an annual dividend of $0.50 per share and has a dividend yield of 2.1%. Advance Auto Parts pays out 135.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Eagle Outfitters pays out 58.1% of its earnings in the form of a dividend. American Eagle Outfitters is clearly the better dividend stock, given its higher yield and lower payout ratio.
American Eagle Outfitters received 234 more outperform votes than Advance Auto Parts when rated by MarketBeat users. Likewise, 64.34% of users gave American Eagle Outfitters an outperform vote while only 64.31% of users gave Advance Auto Parts an outperform vote.
Advance Auto Parts has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, American Eagle Outfitters has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500.
Summary
American Eagle Outfitters beats Advance Auto Parts on 18 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding AAP and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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