Advance Auto Parts Inc (AAP)vsO’Reilly Automotive Inc (ORLY)
AAP
Advance Auto Parts Inc
$42.66
+4.02%
CONSUMER CYCLICAL · Cap: $2.57B
ORLY
O’Reilly Automotive Inc
$82.88
+3.55%
CONSUMER CYCLICAL · Cap: $69.43B
Smart Verdict
WallStSmart Research — data-driven comparison
O’Reilly Automotive Inc generates 115% more annual revenue ($18.57B vs $8.62B). ORLY leads profitability with a 14.3% profit margin vs 1.0%. AAP appears more attractively valued with a PEG of 0.80. ORLY earns a higher WallStSmart Score of 64/100 (C+).
AAP
Buy60
out of 100
Grade: C+
ORLY
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+30.3%
Fair Value
$85.55
Current Price
$42.66
$42.89 discount
Margin of Safety
+77.0%
Fair Value
$369.03
Current Price
$82.88
$286.15 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 260.0% YoY
Growing faster than its price suggests
Every $100 of equity generates 59 in profit
Conservative balance sheet, low leverage
Large-cap with strong market position
Strong operational efficiency at 20.2%
Areas to Watch
Distress zone — elevated risk
ROE of 2.0% — below average capital efficiency
1.0% margin — thin
Revenue declined 0.5%
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : AAP
The strongest argument for AAP centers on Price/Book, EPS Growth, PEG Ratio. PEG of 0.80 suggests the stock is reasonably priced for its growth.
Bull Case : ORLY
The strongest argument for ORLY centers on Return on Equity, Debt/Equity, Market Cap.
Bear Case : AAP
The primary concerns for AAP are Altman Z-Score, Return on Equity, Profit Margin. Debt-to-equity of 2.31 is elevated, increasing financial risk. Thin 1.0% margins leave little buffer for downturns.
Bear Case : ORLY
The primary concerns for ORLY are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
AAP carries more volatility with a beta of 1.03 — expect wider price swings.
ORLY is growing revenue faster at 8.1% — sustainability is the question.
ORLY generates stronger free cash flow (699M), providing more financial flexibility.
Monitor AUTO PARTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ORLY scores higher overall (64/100 vs 60/100). AAP offers better value entry with a 30.3% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Advance Auto Parts Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
Advance Auto Parts, Inc. (Advance) is an American automotive aftermarket parts provider. Headquartered in Raleigh, North Carolina, it serves both professional installer and do-it-yourself (DIY) customers.
Visit Website →O’Reilly Automotive Inc
CONSUMER CYCLICAL · AUTO PARTS · USA
O'Reilly Auto Parts is an American auto parts retailer that provides automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States serving both the professional service providers and do-it-yourself customers.
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