WallStSmart

Goodyear Tire & Rubber Co (GT)vsO’Reilly Automotive Inc (ORLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

O’Reilly Automotive Inc generates 2% more annual revenue ($18.21B vs $17.91B). ORLY leads profitability with a 14.3% profit margin vs -11.6%. GT appears more attractively valued with a PEG of 0.43. ORLY earns a higher WallStSmart Score of 62/100 (C+).

GT

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 3.0Value: 8.3Quality: 4.0
Piotroski: 4/9Altman Z: 1.49

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

GTUndervalued (+40.3%)

Margin of Safety

+40.3%

Fair Value

$15.88

Current Price

$5.71

$10.17 discount

UndervaluedFair: $15.88Overvalued
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

GT3 strengths · Avg: 9.3/10
PEG RatioValuation
0.4310/10

Growing faster than its price suggests

Price/BookValuation
0.5x10/10

Reasonable price relative to book value

EPS GrowthGrowth
34.6%8/10

Earnings expanding 34.6% YoY

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

GT4 concerns · Avg: 2.5/10
Market CapQuality
$1.84B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
0.2%3/10

Operating margin of 0.2%

Return on EquityProfitability
-50.0%2/10

ROE of -50.0% — below average capital efficiency

Revenue GrowthGrowth
-8.7%2/10

Revenue declined 8.7%

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 : GT

The strongest argument for GT centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.43 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 : GT

The primary concerns for GT are Market Cap, Operating Margin, Return on Equity. Debt-to-equity of 2.67 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

GT profiles as a turnaround stock while ORLY is a value play — different risk/reward profiles.

GT carries more volatility with a beta of 1.14 — expect wider price swings.

ORLY is growing revenue faster at 10.2% — sustainability is the question.

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

Bottom Line

ORLY scores higher overall (62/100 vs 57/100) and 10.2% revenue growth. GT offers better value entry with a 40.3% 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.

Goodyear Tire & Rubber Co

CONSUMER CYCLICAL · AUTO PARTS · USA

Goodyear Tire & Rubber Company develops, manufactures, distributes and sells tires and related products and services worldwide. The company is headquartered in Akron, Ohio.

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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