O’Reilly Automotive (NASDAQ:ORLY – Get Free Report) and CarParts.com (NASDAQ:PRTS – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.
Volatility & Risk
O’Reilly Automotive has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, CarParts.com has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.
Insider and Institutional Ownership
85.0% of O’Reilly Automotive shares are held by institutional investors. Comparatively, 75.3% of CarParts.com shares are held by institutional investors. 0.8% of O’Reilly Automotive shares are held by insiders. Comparatively, 6.6% of CarParts.com shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for O’Reilly Automotive and CarParts.com, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| O’Reilly Automotive | 0 | 3 | 16 | 1 | 2.90 |
| CarParts.com | 1 | 1 | 0 | 0 | 1.50 |
O’Reilly Automotive currently has a consensus price target of $108.00, suggesting a potential upside of 21.28%. CarParts.com has a consensus price target of $7.00, suggesting a potential downside of 19.40%. Given O’Reilly Automotive’s stronger consensus rating and higher probable upside, equities analysts clearly believe O’Reilly Automotive is more favorable than CarParts.com.
Profitability
This table compares O’Reilly Automotive and CarParts.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| O’Reilly Automotive | 14.27% | -188.24% | 15.83% |
| CarParts.com | -4.03% | -37.30% | -11.38% |
Valuation & Earnings
This table compares O’Reilly Automotive and CarParts.com”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| O’Reilly Automotive | $17.78 billion | 4.02 | $2.54 billion | $3.26 | 27.32 |
| CarParts.com | $517.36 million | 0.14 | -$50.44 million | ($2.96) | -2.93 |
O’Reilly Automotive has higher revenue and earnings than CarParts.com. CarParts.com is trading at a lower price-to-earnings ratio than O’Reilly Automotive, indicating that it is currently the more affordable of the two stocks.
Summary
O’Reilly Automotive beats CarParts.com on 12 of the 15 factors compared between the two stocks.
About O’Reilly Automotive
O’Reilly Automotive, Inc. is a specialty retailer of automotive aftermarket parts, tools and accessories. Its products serve both do-it-yourself customers maintaining their own vehicles and professional repair shops. The company also offers services such as battery testing, check-engine-light code reading and parts installation assistance. Its operations include retail stores and distribution centers that support customers and professional service providers. Founded in 1957 by Charles F. O’Reilly and his son Charles H. O’Reilly, the company opened its first store in Springfield, Missouri.
About CarParts.com
CarParts.com, Inc. is an e-commerce retailer specializing in replacement and aftermarket automotive parts and accessories. Through its online platform, the company serves owners, do-it-yourself customers, professional installers and collision-repair businesses seeking parts for cars, trucks and sport utility vehicles. Its product offerings include collision and body components such as bumpers, fenders, hoods, mirrors and lighting, as well as mechanical parts for braking, suspension, steering, engine, transmission, exhaust and cooling systems.
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