Contrasting O’Reilly Automotive (ORLY) & Its Competitors

O’Reilly Automotive (NASDAQ:ORLY) is one of 285 public companies in the “Specialty Retail” industry, but how does it contrast to its competitors? We will compare O’Reilly Automotive to similar businesses based on the strength of its dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Earnings & Valuation

This table compares O’Reilly Automotive and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
O’Reilly Automotive	$17.78 billion	$2.54 billion	27.03
O’Reilly Automotive Competitors	$7.07 billion	$386.47 million	31.96

O’Reilly Automotive has higher revenue and earnings than its competitors. O’Reilly Automotive is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and 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, O’Reilly Automotive’s competitors have a beta of 1.91, suggesting that their average share price is 91% more volatile than the S&P 500.

Profitability

This table compares O’Reilly Automotive and its competitors’ 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%
O’Reilly Automotive Competitors	-3.67%	-13.85%	3.19%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
O’Reilly Automotive	0	3	16	1	2.90
O’Reilly Automotive Competitors	3663	15555	21588	586	2.46

O’Reilly Automotive currently has a consensus price target of $107.89, indicating a potential upside of 22.44%. As a group, “Specialty Retail” companies have a potential upside of 8.86%. Given O’Reilly Automotive’s stronger consensus rating and higher probable upside, equities analysts clearly believe O’Reilly Automotive is more favorable than its competitors.

Institutional and Insider Ownership

85.0% of O’Reilly Automotive shares are owned by institutional investors. Comparatively, 51.6% of shares of all “Specialty Retail” companies are owned by institutional investors. 0.8% of O’Reilly Automotive shares are owned by insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

O’Reilly Automotive beats its competitors on 9 of the 13 factors compared.

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.