Head-To-Head Comparison: O’Reilly Automotive (NASDAQ:ORLY) and High Tide (OTCMKTS:HITID)

High Tide (OTCMKTS:HITID) and O’Reilly Automotive (NASDAQ:ORLY) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for High Tide and O’Reilly Automotive, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
High Tide	0	0	0	0	0.00
O’Reilly Automotive	0	2	15	1	2.94

O’Reilly Automotive has a consensus price target of $107.24, suggesting a potential upside of 20.77%. Given O’Reilly Automotive’s stronger consensus rating and higher probable upside, analysts clearly believe O’Reilly Automotive is more favorable than High Tide.

Profitability

This table compares High Tide and O’Reilly Automotive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
High Tide	N/A	N/A	N/A
O’Reilly Automotive	14.27%	-232.45%	15.79%

Earnings and Valuation

This table compares High Tide and O’Reilly Automotive”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
High Tide	N/A	N/A	N/A	N/A	N/A
O’Reilly Automotive	$17.78 billion	4.04	$2.54 billion	$3.14	28.28

O’Reilly Automotive has higher revenue and earnings than High Tide.

Insider & Institutional Ownership

85.0% of O’Reilly Automotive shares are owned by institutional investors. 0.8% of O’Reilly Automotive shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

O’Reilly Automotive beats High Tide on 9 of the 10 factors compared between the two stocks.

About High Tide

High Tide Inc. operates as a vertically-integrated company in the cannabis market in Canada, the United States, and internationally. It engages in the design, manufacture, and distribution of smoking accessories and cannabis lifestyle products. It is also involved in the wholesale and retailing of cannabis products, as well as operates and franchises licensed retail cannabis stores. In addition, the company provides data analytics services, as well as operates Grasscity.com and CBDcity.com platforms. As of April 26, 2021, it operated 85 retail locations in Canada. The company was formerly known as High Tide Ventures Inc. and changed its name to High Tide Inc. in October 2018. High Tide Inc. was founded in 2009 and is headquartered in Calgary, Canada.

About O’Reilly Automotive

O’Reilly Automotive, Inc., together with its subsidiaries, operates as a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, Puerto Rico, and Mexico. The company provides new and remanufactured automotive hard parts and maintenance items, such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts, fuel pumps, hoses, starters, temperature control, water pumps, antifreeze, appearance products, engine additives, filters, fluids, lighting products, and oil and wiper blades; and accessories, including floor mats, seat covers, and truck accessories. It also offers auto body paint and related materials, automotive tools, and professional service provider service equipment. In addition, the company provide enhanced services and programs comprising used oil, oil filter, and battery recycling; battery, wiper, and bulb replacement; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool program; drum and rotor resurfacing; custom hydraulic hoses; and professional paint shop mixing and related materials. Further, it offers do-it-yourself and professional service for domestic and imported automobiles, vans, and trucks. The company was founded in 1957 and is headquartered in Springfield, Missouri.