Financial Comparison: Advance Auto Parts (NYSE:AAP) & NaaS Technology (NASDAQ:NAAS)

Advance Auto Parts (NYSE:AAP) and NaaS Technology (NASDAQ:NAAS) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.

Valuation & Earnings

This table compares Advance Auto Parts and NaaS Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advance Auto Parts	$8.62 billion	0.31	$44.00 million	$1.37	32.65
NaaS Technology	$104.00 million	0.53	-$62.77 million	($87.84)	-0.04

Advance Auto Parts has higher revenue and earnings than NaaS Technology. NaaS Technology 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.

Volatility and Risk

Advance Auto Parts has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, NaaS Technology has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.

Profitability

This table compares Advance Auto Parts and NaaS Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advance Auto Parts	0.97%	9.84%	1.83%
NaaS Technology	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and recommmendations for Advance Auto Parts and NaaS Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advance Auto Parts	1	18	2	0	2.05
NaaS Technology	1	0	0	0	1.00

Advance Auto Parts presently has a consensus price target of $50.19, indicating a potential upside of 12.20%. Given Advance Auto Parts’ stronger consensus rating and higher possible upside, research analysts plainly believe Advance Auto Parts is more favorable than NaaS Technology.

Insider & Institutional Ownership

88.7% of Advance Auto Parts shares are held by institutional investors. Comparatively, 1.8% of NaaS Technology shares are held by institutional investors. 0.8% of Advance Auto Parts shares are held by insiders. Comparatively, 18.0% of NaaS Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Advance Auto Parts beats NaaS Technology on 12 of the 14 factors compared between the two stocks.

About Advance Auto Parts

Advance Auto Parts, Inc. provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company offers battery accessories; belts and hoses; brakes and brake pads; chassis and climate control parts; clutches and drive shafts; engines and engine parts; exhaust systems and parts; hub assemblies; ignition components and wires; radiators and cooling parts; starters and alternators; and steering and alignment parts. It also offers air conditioning chemicals and accessories; air fresheners; antifreeze and washer fluids; electrical wires and fuses; electronics; floor mats, seat covers, and interior accessories; hand and specialty tools; lighting products; performance parts; sealants, adhesives, and compounds; tire repair accessories; vent shades, mirrors and exterior accessories; washes, waxes and cleaning supplies; and wiper blades. In addition, the company offers air filters; fuel and oil additives; fuel filters; grease and lubricants; motor oils; oil filters, part cleaners and treatments; and transmission fluids for engine maintenance. Further, it offers battery and wiper installation; engine light scanning and checking; electrical system testing, including batteries, starters, and alternators; oil and battery recycling; and loaner tool program services. Additionally, the company sells its products through its website. It serves professional installers and do-it-yourself customers. The company operates stores under the Advance Auto Parts and Carquest names, as well as branches under the Worldpac name. The company has stores in the United States, Puerto Rico, the U.S. Virgin Islands, and Canada; and independently owned Carquest branded stores in Mexico and various Caribbean Islands. Advance Auto Parts, Inc. was founded in 1929 and is based in Raleigh, North Carolina.

About NaaS Technology

NaaS Technology Inc. provides electric vehicle (EV) charging services in China. The company offers integrated online EV charging solutions to charging stations, including mobility connectivity services through Kuaidian; SaaS products, such as traffic support and management, marketing, payment, chargers’ management, order management, load management, and membership management. It also provides offline EV charging solutions comprising site selection, hardware procurement, engineering, procurement, and construction, station maintenance, energy storage, and customer support services. In addition, the company offers electricity procurement services to charging stations, as well as other amenities and ancillary services, such as vending machines, massage chairs, and car wash tunnels. It serves charger manufacturers, EV OEMS, and end-users. NaaS Technology Inc. is headquartered in Beijing, China.