Home > Comparison > Consumer Cyclical > TSCO vs GPC
The strategic rivalry between Tractor Supply Company and Genuine Parts Company defines the current trajectory of the specialty retail sector. Tractor Supply operates a capital-intensive rural lifestyle retail model focused on agricultural and pet products. In contrast, Genuine Parts specializes in distributing automotive and industrial replacement parts with a broad international footprint. This analysis will weigh their distinct approaches to determine which offers a superior risk-adjusted outlook for a diversified portfolio in 2026.
Table of contents
Companies Overview
Tractor Supply Company and Genuine Parts Company are key players in the specialty retail sector, each serving distinct customer bases with tailored product offerings.
Tractor Supply Company: Rural Lifestyle Retail Leader
Tractor Supply Company dominates the U.S. rural lifestyle retail market. Its core revenue engine is a broad merchandise mix for farmers, ranchers, and pet owners, including livestock supplies, tools, and seasonal products. In 2026, it focuses strategically on expanding its store footprint and enhancing e-commerce capabilities to capture rural consumer demand.
Genuine Parts Company: Global Automotive and Industrial Distributor
Genuine Parts Company excels in distributing automotive and industrial replacement parts worldwide. Its competitive advantage lies in a diverse product portfolio serving repair shops, fleet operators, and industrial clients across multiple continents. The company’s 2026 strategy prioritizes expanding value-added services and strengthening global supply chains amid evolving automotive technologies.
Strategic Collision: Similarities & Divergences
Both companies serve niche specialty retail markets but diverge sharply in scope and approach. Tractor Supply emphasizes a consumer-focused rural lifestyle ecosystem, while Genuine Parts targets a broad B2B industrial and automotive network. Their primary battleground is geographic expansion versus service diversification. These differences define distinct investment profiles: Tractor Supply leans on retail growth, Genuine Parts on industrial resilience and global reach.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Tractor Supply Company (TSCO) | Genuine Parts Company (GPC) |
|---|---|---|
| Revenue | 15.5B | 23.5B |
| Cost of Revenue | 10.4B | 15.0B |
| Operating Expenses | 3.7B | 7.1B |
| Gross Profit | 5.2B | 8.5B |
| EBITDA | 1.96B | 1.68B |
| EBIT | 1.47B | 1.27B |
| Interest Expense | 69M | 97M |
| Net Income | 1.10B | 904M |
| EPS | 2.07 | 6.49 |
| Fiscal Year | 2025 | 2024 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company converts revenue into profits with greater efficiency and momentum.
Tractor Supply Company Analysis
Tractor Supply’s revenue grew steadily to 15.5B in 2025, with net income rising gently to 1.1B. Its gross margin remains solid at 33.2%, reflecting product pricing strength. However, net margin contracted slightly to 7.1%, signaling some pressure on operating efficiency despite stable EBIT margins near 9.5%.
Genuine Parts Company Analysis
Genuine Parts posted 23.5B revenue in 2024, growing modestly but slower than TSCO. The company boasts a higher gross margin of 36.3% but suffers from thinner net margins at 3.9%. Net income declined to 904M last year, indicating margin compression and weaker profit conversion despite scale.
Margin Resilience vs. Scale Advantage
TSCO demonstrates healthier net margins and steadier profit growth, while GPC leverages superior gross margins but struggles with bottom-line efficiency. TSCO’s consistent margin control outweighs GPC’s scale benefits, making it a more reliable profit generator for investors focused on operational strength.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose underlying fiscal health, valuation premiums, and capital efficiency for Tractor Supply Company (TSCO) and Genuine Parts Company (GPC):
| Ratios | Tractor Supply Company (TSCO) | Genuine Parts Company (GPC) |
|---|---|---|
| ROE | 42.46% | 20.84% |
| ROIC | 13.11% | 9.82% |
| P/E | 24.18 | 17.98 |
| P/B | 10.27 | 3.75 |
| Current Ratio | 1.34 | 1.16 |
| Quick Ratio | 0.16 | 0.51 |
| D/E | 3.73 | 1.32 |
| Debt-to-Assets | 88.12% | 29.78% |
| Interest Coverage | 21.22 | 14.90 |
| Asset Turnover | 1.42 | 1.22 |
| Fixed Asset Turnover | 2.23 | 6.31 |
| Payout ratio | 44.49% | 61.38% |
| Dividend yield | 1.84% | 3.41% |
| Fiscal Year | 2025 | 2024 |
Efficiency & Valuation Duel: The Vital Signs
Ratios serve as a company’s DNA, uncovering operational strengths and hidden risks that shape investor outcomes.
Tractor Supply Company
TSCO delivers a robust 42.46% ROE and a solid 7.06% net margin, signaling strong profitability. Its P/E of 24.18 suggests a fairly valued stock, though a high PB of 10.27 indicates a stretched equity valuation. The 1.84% dividend yield complements its strategy, balancing returns with reinvestment in growth.
Genuine Parts Company
GPC posts a respectable 20.84% ROE but a weaker 3.85% net margin, reflecting moderate profitability. Its P/E at 17.98 appears reasonable, while the PB of 3.75 is less alarming than TSCO’s. A 3.41% dividend yield highlights GPC’s commitment to returning cash to shareholders amid steady operational efficiency.
Premium Valuation vs. Operational Safety
TSCO commands a premium valuation underpinned by superior profitability but carries higher equity risk. GPC offers a more conservative valuation with a stronger dividend and lower leverage. Investors seeking growth may lean toward TSCO, while those prioritizing income and stability might prefer GPC’s profile.
Which one offers the Superior Shareholder Reward?
I observe that Tractor Supply Company (TSCO) offers a modest dividend yield around 1.8% with a payout ratio near 44%, supported by free cash flow coverage above 110%. Genuine Parts Company (GPC) delivers a higher yield near 3.4% but pays out over 60% of earnings, pressuring sustainability. TSCO’s share buybacks are less aggressive but well-covered, while GPC shows stronger buyback activity fueling total returns. Historically, TSCO’s balanced distribution and solid free cash flow coverage suggest a more sustainable model. I conclude that TSCO provides a superior long-term shareholder reward by combining reliable dividends with prudent buybacks and growth reinvestment.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and strategic trade-offs of Tractor Supply Company and Genuine Parts Company:
Genuine Parts Company shows clear strength in ROE (5 vs. 1) and ROA (3 vs. 1), indicating superior profitability and asset efficiency. It also leads in discounted cash flow (4 vs. 3), signaling better valuation support. Tractor Supply’s uniformly low scores reflect a lack of balance, relying weakly across all metrics. Genuine Parts presents a more balanced profile, though both firms share a weak debt-to-equity score (1), raising financial risk concerns.
Bankruptcy Risk: Solvency Showdown
Genuine Parts’ Altman Z-Score of 2.53 places it in the grey zone, while Tractor Supply’s 4.85 scores safely above 3, indicating stronger solvency and lower bankruptcy risk in this market cycle:
Financial Health: Quality of Operations
Both companies score in the average range on Piotroski F-Score, with Genuine Parts slightly ahead (6 vs. 5). Neither shows immediate red flags, but Genuine Parts’ marginally stronger score suggests marginally better internal financial health and operational quality:
How are the two companies positioned?
This section dissects the operational DNA of TSCO and GPC by comparing their revenue distribution by segment and internal dynamics. The goal is to confront their economic moats and identify which model delivers the most resilient competitive advantage today.
Revenue Segmentation: The Strategic Mix
This visual comparison dissects how Tractor Supply Company and Genuine Parts Company diversify their income streams and where their primary sector bets lie:
Tractor Supply Company splits revenue across five segments, with Truck, Tool, & Hardware anchoring at $3.87B, closely matched by Livestock and Pet at $3.72B. Genuine Parts Company concentrates heavily in Automotive Parts at $14.77B, nearly doubling its Industrial Parts at $8.72B. TSCO’s diversified mix reduces risk and builds ecosystem lock-in, while GPC’s focus on automotive showcases infrastructure dominance but exposes it to sector cyclicality.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of Tractor Supply Company (TSCO) and Genuine Parts Company (GPC):
TSCO Strengths
- Strong ROE at 42.46% indicating efficient equity use
- Favorable ROIC (13.11%) above WACC (6.13%) shows value creation
- High interest coverage (21.22) signals low default risk
- Diverse product segments including agriculture and hardware
- Solid asset turnover (1.42) reflects operational efficiency
GPC Strengths
- Higher dividend yield at 3.41% attracts income investors
- Favorable debt-to-assets ratio (29.78%) suggests conservative leverage
- Strong fixed asset turnover (6.31) indicates efficient asset use
- Good global presence with significant revenue from US, Europe, Canada
- Favorable ROE (20.84%) and WACC (6.19%) support value creation
TSCO Weaknesses
- High debt-to-assets (88.12%) implies financial risk
- Unfavorable debt-to-equity (3.73) highlights leverage concerns
- Low quick ratio (0.16) signals liquidity risk
- Unfavorable PB ratio (10.27) may indicate overvaluation
- Narrow geographic footprint limits global diversification
GPC Weaknesses
- Lower net margin (3.85%) indicates weaker profitability
- Unfavorable PB ratio (3.75) suggests valuation risk
- Moderate debt-to-equity (1.32) could limit financial flexibility
- Low quick ratio (0.51) points to liquidity constraints
TSCO excels in profitability metrics and operational efficiency but carries higher financial leverage risk. GPC shows stronger global diversification and conservative leverage but faces margin pressure and moderate liquidity concerns. These contrasts shape the strategic focus each company must maintain going forward.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only reliable shield protecting long-term profits from relentless competition erosion:
Tractor Supply Company: Brand Loyalty and Rural Focus
Tractor Supply’s moat hinges on strong brand loyalty and a niche rural lifestyle market. Its 7% net margin signals pricing power despite margin pressure in 2025. Expansion of Petsense stores could either deepen or test this moat in 2026.
Genuine Parts Company: Diversified Industrial Network
Genuine Parts relies on a broad industrial parts distribution network, contrasting Tractor Supply’s focused niche. Its improving ROIC and 3.6% excess returns reveal a robust, scalable moat. Continued international growth supports further moat strengthening.
Rural Niche vs. Industrial Scale: Moat Strength Showdown
Genuine Parts exhibits a deeper, expanding moat with rising ROIC and international diversification. Tractor Supply creates value but faces declining profitability. Genuine Parts is better positioned to defend and grow market share.
Which stock offers better returns?
The past year shows contrasting price movements: Tractor Supply Company edges up 1.56% with decelerating momentum, while Genuine Parts Company declines 7.93% but gains recent acceleration.
Trend Comparison
Tractor Supply Company’s stock rose 1.56% over the last 12 months, indicating a marginal bullish trend with decelerating gains and moderate volatility (3.0 std dev). It peaked at 61.76 and bottomed at 48.4.
Genuine Parts Company’s stock fell 7.93%, confirming a bearish trend despite accelerating recent gains. Volatility is high (11.77 std dev), with a peak of 162.39 and a low of 113.61.
TSCO’s slight overall gain contrasts with GPC’s sharper decline, making Tractor Supply Company the stronger performer over the year.
Target Prices
Analysts present a cautiously optimistic consensus for Tractor Supply Company and Genuine Parts Company.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Tractor Supply Company | 50 | 67 | 59 |
| Genuine Parts Company | 140 | 150 | 145.33 |
Target prices for Tractor Supply suggest upside potential from the current 50.88, while Genuine Parts trades slightly below consensus at 138.99, indicating moderate appreciation prospects.
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How do institutions grade them?
Institutional grades provide insight into how professional analysts view these two companies:
Tractor Supply Company Grades
The following table summarizes recent grades assigned by prominent grading companies to Tractor Supply Company:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Jefferies | Maintain | Buy | 2026-01-30 |
| JP Morgan | Maintain | Neutral | 2026-01-30 |
| Piper Sandler | Maintain | Overweight | 2026-01-30 |
| Goldman Sachs | Maintain | Buy | 2026-01-30 |
| Mizuho | Maintain | Outperform | 2026-01-30 |
| Morgan Stanley | Maintain | Equal Weight | 2026-01-30 |
| Telsey Advisory Group | Maintain | Outperform | 2026-01-30 |
| TD Cowen | Maintain | Hold | 2026-01-30 |
| DA Davidson | Maintain | Buy | 2026-01-30 |
Genuine Parts Company Grades
Below are recent grades issued by recognized grading firms for Genuine Parts Company:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Goldman Sachs | Upgrade | Neutral | 2025-11-13 |
| JP Morgan | Maintain | Overweight | 2025-10-23 |
| Truist Securities | Maintain | Buy | 2025-10-22 |
| UBS | Maintain | Neutral | 2025-10-10 |
| Evercore ISI Group | Maintain | Outperform | 2025-10-01 |
| Evercore ISI Group | Maintain | Outperform | 2025-08-26 |
| Loop Capital | Maintain | Buy | 2025-07-24 |
| JP Morgan | Maintain | Overweight | 2025-07-23 |
| UBS | Maintain | Neutral | 2025-07-23 |
| Truist Securities | Maintain | Buy | 2025-07-23 |
Which company has the best grades?
Tractor Supply Company holds consistently bullish grades, including multiple “Buy” and “Outperform” ratings. Genuine Parts Company also maintains positive grades but with more “Neutral” ratings. This suggests stronger analyst conviction in Tractor Supply Company, potentially influencing investor confidence.
Risks specific to each company
The following categories identify critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
Tractor Supply Company
- Strong rural lifestyle niche but high competition in specialty retail limits pricing power.
Genuine Parts Company
- Diverse automotive and industrial parts markets face intense competition and evolving technology demands.
2. Capital Structure & Debt
Tractor Supply Company
- High debt-to-assets at 88.1% signals leverage risk despite good interest coverage.
Genuine Parts Company
- Lower debt-to-assets at 29.8%, but debt-to-equity remains a concern, reflecting moderate leverage risk.
3. Stock Volatility
Tractor Supply Company
- Beta of 0.737 indicates lower volatility than market average, suggesting steadier price movement.
Genuine Parts Company
- Beta of 0.753 also shows moderate volatility, slightly higher but comparable to TSCO.
4. Regulatory & Legal
Tractor Supply Company
- Primarily US-focused, regulatory risk from agricultural and retail compliance is moderate.
Genuine Parts Company
- Multi-national presence increases regulatory complexity and exposure to diverse legal environments.
5. Supply Chain & Operations
Tractor Supply Company
- Dependency on rural supply lines could face disruption risks, but strong store network mitigates.
Genuine Parts Company
- Complex global supply chain heightens risk of operational delays and cost inflation.
6. ESG & Climate Transition
Tractor Supply Company
- Moderate exposure through agricultural products; potential pressure to adopt sustainable practices.
Genuine Parts Company
- Industrial and automotive focus increases exposure to climate transition regulations and innovation demands.
7. Geopolitical Exposure
Tractor Supply Company
- US-centric operations limit geopolitical risks but reduce geographic diversification benefits.
Genuine Parts Company
- Operations across multiple countries expose GPC to geopolitical tensions and trade policy risks.
Which company shows a better risk-adjusted profile?
Tractor Supply’s highest risk lies in its heavy leverage, threatening financial flexibility. Genuine Parts faces its greatest risk from complex global operations and regulatory challenges. Despite TSCO’s debt concerns, its stable market niche and lower volatility offer a cleaner risk profile. GPC’s geographic and regulatory diversity add layers of risk despite a less leveraged balance sheet. Recent data highlight TSCO’s 88% debt-to-assets ratio as a clear red flag, while GPC’s Altman Z-score in the grey zone signals moderate distress. Overall, I find Tractor Supply presents a better risk-adjusted profile for cautious investors.
Final Verdict: Which stock to choose?
Tractor Supply Company’s superpower lies in its robust capital efficiency, consistently generating returns well above its cost of capital. This cash machine model drives shareholder value despite a concerning upward debt load that warrants caution. It suits portfolios aiming for aggressive growth with an appetite for leverage risk.
Genuine Parts Company’s strategic moat is its durable competitive advantage, demonstrated by a steadily improving ROIC and strong asset turnover. It offers a safer balance sheet with less financial leverage than TSCO, making it a solid choice for GARP investors who value stability alongside growth potential.
If you prioritize high return on invested capital and are comfortable with financial leverage, TSCO outshines with superior capital efficiency and growth potential. However, if you seek better financial stability and a durable competitive advantage with less debt risk, GPC offers a more prudent path. Each stock fits distinct investor profiles shaped by risk tolerance and growth objectives.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Tractor Supply Company and Genuine Parts Company to enhance your investment decisions:
