AAP vs GT: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
AAP and GT are similarly sized, but GT trades noticeably cheaper on forward earnings (11.17x vs 13.86x): the market is paying up for AAP's profile and pricing GT more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
AAP vs GT: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | AAP | GT | What it tells you |
|---|---|---|---|
| Forward P/E | 13.86 | 11.17 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Beta | 1.05 | 1.12 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 65% of range | 13% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 1.51 | 0.62 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: GT is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how AAP and GT affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. AAP and GT share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined AAP and GT exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Advance Auto Parts (AAP) do?
Advance Auto Parts, Inc. (NYSE: AAP) is one of the largest automotive aftermarket parts retailers in the United States, operating roughly 4,300 company stores plus independently owned Carquest locations. It sells replacement and maintenance parts, batteries, accessories, and chemicals for cars and light trucks to two broad customer groups: professional installers and repair shops (the Pro or do-it-for-me channel) and individual DIY consumers. The company earns money by sourcing parts and selling them at a markup through its store network, supported by a distribution and market-hub supply chain designed to get the right part to a shop or counter quickly, which is the key competitive variable in parts retail.
What does Goodyear Tire & Rubber (GT) do?
The Goodyear Tire & Rubber Company designs, manufactures and sells tires under the Goodyear, Cooper, Kelly, Dunlop (in some markets), Debica, Sava and Fulda names, and reports in three geographic segments: Americas, EMEA and Asia Pacific. The business has two very different halves. Original equipment tires are sold to automakers at thin margins and follow the auto production cycle. Replacement tires are sold to consumers and fleets through dealers, retail chains and Goodyear's own outlets, and that is where most of the profit is earned. Volume runs at roughly 36 to 38 million units a quarter (Q2 2026 was ~36.5 million, down ~4.0% year over year) on trailing twelve-month revenue of about $17.69B. The 2021 acquisition of Cooper Tire added scale in the US replacement market and also added the debt that now defines the story.
AAP vs GT: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- AAP drivers: Turnaround momentum in comparable sales; Margin recovery from restructuring.
- GT drivers: Goodyear Forward cost and mix benefits; Deleveraging from completed asset sales.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The turnaround is unproven over a full cycle: a few quarters of positive comps do not guarantee durable, profitable growth, and any relapse in sales or margin would undercut the thesis quickly. For GT, the capital structure is the dominant risk: roughly $7.19B of total debt and ~$6.33B of net debt sit ahead of a market capitalisation near $1.76B, so a persistent operating shortfall compresses the equity far more than it compresses the enterprise.
AAP or GT: which should you pick?
AAP vs GT: the full fundamentals
AAP. Advance Auto Parts is best read as a turnaround, so the numbers that matter are comparable store sales (whether the base business is growing without new stores) and margin (how much of each sales dollar becomes profit). The Q1 2026 comps of about 3.5% and gross margin near 45% mark real progress from a company that had been shrinking and losing money. Because AAP earns lower margins than AutoZone and O'Reilly, much of the potential upside is about closing that gap through supply-chain consolidation and product-margin gains rather than rapid revenue growth. Investors typically compare its valuation and margins against those two larger rivals; the open question is how much of the early turnaround success is already reflected in the share price after the stock rallied on the Q1 results.
GT. The headline price-to-sales figure of about 0.10x is the most misread number on this page. Adding roughly $6.33B of net debt to the ~$1.76B equity gives an enterprise value near $8.1B, or about 0.46x trailing sales, which is a normal multiple for a low-margin manufacturer rather than a distressed one. There is no meaningful earnings multiple because trailing earnings are negative, so the valuation case rests entirely on what normalised segment operating margin the business settles at once Goodyear Forward is complete.
Headline figures (approximate, Q1 2026 (latest quarter, reported May 2026) and FY2026 guidance): AAP shows q1 2026 net sales ~$2.6 billion (comps up ~3.5%), revenue (ttm) ~$8.6 billion, q1 2026 adjusted eps ~$0.77 (beat estimates), q1 2026 gross margin ~45.1% (up from ~42.9%); GT shows revenue (ttm) ~$17.69B, market cap ~$1.76B, share price ~$6.11, price / sales (ttm) ~0.10x.
The bottom line: AAP vs GT
AAP and GT are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined AAP and GT exposure against your real portfolio. It is not an investment adviser.
Wondering how AAP or GT fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Advance Auto Parts with AI
Connect the broker you already use and ask Walnut's AI how AAP fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between AAP and GT?
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Advance Auto Parts, Inc. The Goodyear Tire & Rubber Company designs, manufactures and sells tires under the Goodyear, Cooper, Kelly, Dunlop (in some markets), Debica, Sava and Fulda names, and reports in three geographic segments: Americas, EMEA and Asia Pacific. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is AAP or GT the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, AAP or GT?
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On forward P/E (as of August 2026), AAP trades at 13.86x and GT at 11.17x, so GT is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both AAP and GT?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of AAP vs GT?
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AAP: The turnaround is unproven over a full cycle: a few quarters of positive comps do not guarantee durable, profitable growth, and any relapse in sales or margin would undercut the thesis quickly. Advance Auto Parts remains the smallest-margin and structurally weaker of the three big public parts retailers, holding roughly 18% of the aftermarket versus a dominant AutoZone and a faster-growing O'Reilly (whose Q1 2026 comps rose about 8%), so it is playing catch-up against better-capitalized rivals. The company cut its dividend sharply during the restructuring and free cash flow has been pressured, so capital return is far below its historical level. Execution risk in the distribution consolidation and store closures is real, and disruption could hurt service levels. Finally, auto-parts retail is competitive and somewhat cyclical, exposed to consumer spending, inflation in parts costs, tariffs on imported components, and the long-run shift toward electric vehicles, which have fewer serviceable wear parts than internal-combustion cars. GT: The capital structure is the dominant risk: roughly $7.19B of total debt and ~$6.33B of net debt sit ahead of a market capitalisation near $1.76B, so a persistent operating shortfall compresses the equity far more than it compresses the enterprise. Cash generation has been negative through the first half of 2026 (operating cash flow of about negative $620M over six months), which is seasonally normal for tires but leaves less room for error at this leverage. Tariffs added roughly $100M of cost in Q2 2026 and inflation another ~$53M, both largely outside management's control. Goodyear also carries substantial pension and other post-employment obligations and is a defendant, alongside Bridgestone, Michelin, Continental and Pirelli, in consolidated tire price-fixing class actions in Ohio federal court, which are consumer antitrust claims rather than securities claims. Finally, the restructuring charges tied to plant closures land well before the promised savings, so reported results can deteriorate even when the underlying plan is on schedule.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell AAP or GT; figures are approximate and dated (as of August 2026). Verify current data before investing.