Advance Auto Parts (NYSE:AAP) and Prospect Capital (NYSE:PBY) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Advance Auto Parts and Prospect Capital, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Advance Auto Parts | 3 | 7 | 11 | 0 | 2.38 |
Prospect Capital | 0 | 0 | 0 | 0 | N/A |
Advance Auto Parts presently has a consensus target price of $154.9524, indicating a potential downside of 3.56%. Given Advance Auto Parts' higher possible upside, research analysts clearly believe Advance Auto Parts is more favorable than Prospect Capital.
Insider and Institutional Ownership
93.9% of Advance Auto Parts shares are held by institutional investors. 4.1% of Advance Auto Parts shares are held by company 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.
Earnings & Valuation
This table compares Advance Auto Parts and Prospect Capital's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Advance Auto Parts | $9.71 billion | 1.08 | $486.90 million | $8.19 | 19.62 |
Prospect Capital | N/A | N/A | N/A | N/A | N/A |
Advance Auto Parts has higher revenue and earnings than Prospect Capital.
Profitability
This table compares Advance Auto Parts and Prospect Capital's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Advance Auto Parts | 4.84% | 15.75% | 4.86% |
Prospect Capital | N/A | N/A | N/A |
Summary
Advance Auto Parts beats Prospect Capital on 8 of the 8 factors compared between the two stocks.