Critical Analysis: VOXX International Corporation (VOXX) and Advance Auto Parts (NYSE:AAP)

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

Risk and Volatility

Advance Auto Parts has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, VOXX International Corporation has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Institutional and Insider Ownership

54.4% of VOXX International Corporation shares are owned by institutional investors. 4.5% of Advance Auto Parts shares are owned by insiders. Comparatively, 17.8% of VOXX International Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Advance Auto Parts and VOXX International Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advance Auto Parts 3 7 11 1 2.45
VOXX International Corporation 0 1 0 0 2.00

Advance Auto Parts currently has a consensus price target of $123.12, indicating a potential upside of 32.02%. VOXX International Corporation has a consensus price target of $7.00, indicating a potential downside of 7.28%. Given Advance Auto Parts’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Advance Auto Parts is more favorable than VOXX International Corporation.

Dividends

Advance Auto Parts pays an annual dividend of $0.24 per share and has a dividend yield of 0.3%. VOXX International Corporation does not pay a dividend. Advance Auto Parts pays out 4.8% of its earnings in the form of a dividend.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Advance Auto Parts $9.49 billion 0.73 $960.52 million $5.00 18.65
VOXX International Corporation $684.69 million 0.27 $15.82 million $0.23 32.83

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 3.91% 14.71% 5.22%
VOXX International Corporation 0.83% 1.45% 0.83%

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.

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