WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

O’Reilly Automotive Inc generates 491% more annual revenue ($17.78B vs $3.01B). ALSN leads profitability with a 20.7% profit margin vs 14.3%. ALSN appears more attractively valued with a PEG of 0.67. ALSN earns a higher WallStSmart Score of 81/100 (A-).

ALSN

Exceptional Buy

81

out of 100

Grade: A-

Growth: 7.3Profit: 9.0Value: 10.0Quality: 8.0
Piotroski: 5/9Altman Z: 1.56

ORLY

Buy

60

out of 100

Grade: C

Growth: 6.0Profit: 8.0Value: 8.0Quality: 4.0
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALSNUndervalued (+66.0%)

Margin of Safety

+66.0%

Fair Value

$343.04

Current Price

$118.97

$224.07 discount

UndervaluedFair: $343.04Overvalued
ORLYOvervalued (-9.1%)

Margin of Safety

-9.1%

Fair Value

$86.25

Current Price

$91.16

$4.91 premium

UndervaluedFair: $86.25Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALSN6 strengths · Avg: 8.8/10
Return on EquityProfitability
35.4%10/10

Every $100 of equity generates 35 in profit

EPS GrowthGrowth
117.0%10/10

Earnings expanding 117.0% YoY

Profit MarginProfitability
20.7%9/10

Keeps 21 of every $100 in revenue as profit

PEG RatioValuation
0.678/10

Growing faster than its price suggests

P/E RatioValuation
16.1x8/10

Attractively priced relative to earnings

Operating MarginProfitability
27.3%8/10

Strong operational efficiency at 27.3%

ORLY2 strengths · Avg: 9.5/10
Return on EquityProfitability
58.6%10/10

Every $100 of equity generates 59 in profit

Market CapQuality
$74.27B9/10

Large-cap with strong market position

Areas to Watch

ALSN3 concerns · Avg: 3.7/10
Price/BookValuation
19.1x4/10

Trading at 19.1x book value

Altman Z-ScoreHealth
1.564/10

Distress zone — elevated risk

Debt/EquityHealth
1.303/10

Elevated debt levels

ORLY3 concerns · Avg: 3.7/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

P/E RatioValuation
29.6x4/10

Moderate valuation

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : ALSN

The strongest argument for ALSN centers on Return on Equity, EPS Growth, Profit Margin. Profitability is solid with margins at 20.7% and operating margin at 27.3%. Revenue growth of 20.4% demonstrates continued momentum.

Bull Case : ORLY

The strongest argument for ORLY centers on Return on Equity, Market Cap.

Bear Case : ALSN

The primary concerns for ALSN are Price/Book, Altman Z-Score, Debt/Equity.

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 0.95 — expect wider price swings.

ALSN is growing revenue faster at 20.4% — sustainability is the question.

ORLY generates stronger free cash flow (364M), providing more financial flexibility.

Bottom Line

ALSN scores higher overall (81/100 vs 60/100), backed by strong 20.7% margins and 20.4% revenue growth. Both earn "Exceptional 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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