Goodyear Tire & Rubber Co (GT)vsO’Reilly Automotive Inc (ORLY)
GT
Goodyear Tire & Rubber Co
$7.08
-2.75%
CONSUMER CYCLICAL · Cap: $2.08B
ORLY
O’Reilly Automotive Inc
$87.36
-3.61%
CONSUMER CYCLICAL · Cap: $71.71B
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 64/100 (C+).
GT
Buy59
out of 100
Grade: C
ORLY
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+39.5%
Fair Value
$15.68
Current Price
$7.08
$8.60 discount
Margin of Safety
+74.6%
Fair Value
$358.87
Current Price
$87.36
$271.51 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 34.6% YoY
Every $100 of equity generates 59 in profit
Conservative balance sheet, low leverage
Large-cap with strong market position
Areas to Watch
Operating margin of 0.2%
ROE of -50.0% — below average capital efficiency
Revenue declined 8.7%
Negative free cash flow — burning cash
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull 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 Operating Margin, Return on Equity, Revenue Growth. 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 1.12 — 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 (64/100 vs 59/100) and 10.2% revenue growth. GT offers better value entry with a 39.5% 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.
Compare with Other AUTO PARTS Stocks
Want to dig deeper into these stocks?