WallStSmart

Allison Transmission Holdings Inc (ALSN)vsO’Reilly Automotive Inc (ORLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

O’Reilly Automotive Inc generates 399% more annual revenue ($18.21B vs $3.65B). ALSN leads profitability with a 14.9% profit margin vs 14.3%. ALSN appears more attractively valued with a PEG of 0.69. ALSN earns a higher WallStSmart Score of 65/100 (C+).

ALSN

Buy

65

out of 100

Grade: C+

Growth: 5.3Profit: 8.0Value: 5.3Quality: 5.0
Piotroski: 4/9Altman Z: 1.59

ORLY

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 8.0Value: 6.7Quality: 5.0
Piotroski: 3/9Altman Z: 1.42
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALSNSignificantly Overvalued (-81.0%)

Margin of Safety

-81.0%

Fair Value

$64.33

Current Price

$115.75

$51.42 premium

UndervaluedFair: $64.33Overvalued
ORLYUndervalued (+75.2%)

Margin of Safety

+75.2%

Fair Value

$364.82

Current Price

$88.40

$276.42 discount

UndervaluedFair: $364.82Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALSN3 strengths · Avg: 9.0/10
Revenue GrowthGrowth
83.6%10/10

Revenue surging 83.6% year-over-year

Return on EquityProfitability
28.5%9/10

Every $100 of equity generates 29 in profit

PEG RatioValuation
0.698/10

Growing faster than its price suggests

ORLY3 strengths · Avg: 9.7/10
Return on EquityProfitability
58.6%10/10

Every $100 of equity generates 59 in profit

Debt/EquityHealth
-8.1810/10

Conservative balance sheet, low leverage

Market CapQuality
$71.46B9/10

Large-cap with strong market position

Areas to Watch

ALSN3 concerns · Avg: 2.3/10
Altman Z-ScoreHealth
1.594/10

Distress zone — elevated risk

EPS GrowthGrowth
-40.4%2/10

Earnings declined 40.4%

Debt/EquityHealth
2.241/10

Elevated debt levels

ORLY4 concerns · Avg: 3.3/10
PEG RatioValuation
2.194/10

Expensive relative to growth rate

P/E RatioValuation
28.1x4/10

Moderate valuation

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
1.422/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ALSN

The strongest argument for ALSN centers on Revenue Growth, Return on Equity, PEG Ratio. Revenue growth of 83.6% demonstrates continued momentum. PEG of 0.69 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. Revenue growth of 10.2% demonstrates continued momentum.

Bear Case : ALSN

The primary concerns for ALSN are Altman Z-Score, EPS Growth, Debt/Equity. Debt-to-equity of 2.24 is elevated, increasing financial risk.

Bear Case : ORLY

The primary concerns for ORLY are PEG Ratio, P/E Ratio, Piotroski F-Score.

Key Dynamics to Monitor

ALSN profiles as a growth stock while ORLY is a value play — different risk/reward profiles.

ALSN carries more volatility with a beta of 0.94 — expect wider price swings.

ALSN is growing revenue faster at 83.6% — sustainability is the question.

ORLY generates stronger free cash flow (788M), providing more financial flexibility.

Bottom Line

ALSN scores higher overall (65/100 vs 62/100) and 83.6% revenue growth. ORLY offers better value entry with a 75.2% 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.

Allison Transmission Holdings Inc

CONSUMER CYCLICAL · AUTO PARTS · USA

Allison Transmission Holdings, Inc. designs, manufactures and sells fully automatic commercial and defense transmissions for medium and heavy duty commercial vehicles, and medium and heavy duty US defense vehicles globally. The company is headquartered in Indianapolis, Indiana.

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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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