Head-To-Head Review: Advance Auto Parts (NYSE:AAP) & VOXX International Corporation (VOXX)

Advance Auto Parts (NYSE: AAP) and VOXX International Corporation (NASDAQ:VOXX) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitabiliy, institutional ownership, dividends, valuation and risk.

Risk & Volatility

Advance Auto Parts has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, VOXX International Corporation has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Dividends

Advance Auto Parts pays an annual dividend of $0.24 per share and has a dividend yield of 0.2%. VOXX International Corporation does not pay a dividend. Advance Auto Parts pays out 4.4% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings for Advance Auto Parts and VOXX International Corporation, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advance Auto Parts	3	6	12	1	2.50
VOXX International Corporation	0	1	0	0	2.00

Advance Auto Parts presently has a consensus price target of $145.53, suggesting a potential upside of 31.90%. VOXX International Corporation has a consensus price target of $7.00, suggesting a potential upside of 0.72%. Given Advance Auto Parts’ stronger consensus rating and higher possible upside, research analysts plainly believe Advance Auto Parts is more favorable than VOXX International Corporation.

Earnings & Valuation

This table compares Advance Auto Parts and VOXX International Corporation’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Advance Auto Parts	$9.48 billion	0.86	$1.01 billion	$5.51	20.03
VOXX International Corporation	$684.69 million	0.25	$15.82 million	$0.23	30.22

Advance Auto Parts has higher revenue and earnings than VOXX International Corporation. Advance Auto Parts is trading at a lower price-to-earnings ratio than VOXX International Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Advance Auto Parts and VOXX International Corporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advance Auto Parts	4.31%	16.02%	5.51%
VOXX International Corporation	0.83%	1.45%	0.83%

Institutional & Insider Ownership

52.4% of VOXX International Corporation shares are held by institutional investors. 4.5% of Advance Auto Parts shares are held by insiders. Comparatively, 17.8% of VOXX International Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Advance Auto Parts beats VOXX International Corporation on 12 of the 17 factors compared between the two stocks.

About Advance Auto Parts

Advance Auto Parts, Inc. provides automotive aftermarket parts in North America, serving do-it-for-me (Professional) and do-it-yourself (DIY), customers. The Company’s stores and branches offer a selection of brand name, original equipment manufacturer (OEM) and private label automotive replacement parts, accessories, batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles and light and heavy duty trucks. It serves through various channels ranging from traditional brick and mortar store locations to self-serving e-commerce sites. As of December 31, 2016, it operated 5,062 total stores and 127 branches primarily under the trade names Advance Auto Parts, Autopart International, Carquest and Worldpac. As of December 31, 2016, its Advance Auto Parts operations consisted of three geographic divisions, which included the operations of the stores operating under the Advance Auto Parts, Carquest and Autopart International trade names.

About VOXX International Corporation

VOXX International Corporation is an international manufacturer and distributor in the automotive, audio and consumer accessories industries. The Company’s segments include Automotive, Premium Audio and Consumer Accessories. The Automotive segment designs, manufactures, distributes and markets rear-seat entertainment devices, satellite radio products, remote start systems, digital television tuners, mobile antennas, mobile multimedia devices, car link-smartphone telematics application, collision avoidance systems and others. The Premium Audio segment designs, manufactures, distributes and markets home theater systems, outdoor speakers, iPod/computer speakers, business music systems, cinema speakers, flat panel speakers, Bluetooth speakers and others. The Consumer Accessories segment designs and markets remote controls, rechargeable battery packs, wireless and Bluetooth speakers, Singtrix karaoke products, 360 Fly Action Cameras, personal sound amplifiers and others.