Genuine Parts (NYSE:GPC – Get Free Report) and O’Reilly Automotive (NASDAQ:ORLY – Get Free Report) are both large-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.
Institutional & Insider Ownership
78.8% of Genuine Parts shares are held by institutional investors. Comparatively, 85.0% of O’Reilly Automotive shares are held by institutional investors. 0.4% of Genuine Parts shares are held by company insiders. Comparatively, 1.0% of O’Reilly Automotive shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Genuine Parts and O’Reilly Automotive’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Genuine Parts | 3.60% | 23.71% | 5.48% |
| O’Reilly Automotive | 14.10% | -167.25% | 16.26% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Genuine Parts | 1 | 4 | 3 | 2 | 2.60 |
| O’Reilly Automotive | 0 | 2 | 14 | 2 | 3.00 |
Genuine Parts presently has a consensus target price of $130.86, suggesting a potential upside of 6.54%. O’Reilly Automotive has a consensus target price of $94.38, suggesting a potential upside of 2.20%. Given Genuine Parts’ higher possible upside, equities analysts clearly believe Genuine Parts is more favorable than O’Reilly Automotive.
Volatility & Risk
Genuine Parts has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, O’Reilly Automotive has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.
Valuation and Earnings
This table compares Genuine Parts and O’Reilly Automotive”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Genuine Parts | $23.49 billion | 0.73 | $904.08 million | $6.09 | 20.17 |
| O’Reilly Automotive | $16.71 billion | 4.72 | $2.39 billion | $2.72 | 33.95 |
O’Reilly Automotive has lower revenue, but higher earnings than Genuine Parts. Genuine Parts is trading at a lower price-to-earnings ratio than O’Reilly Automotive, indicating that it is currently the more affordable of the two stocks.
Summary
O’Reilly Automotive beats Genuine Parts on 9 of the 14 factors compared between the two stocks.
About Genuine Parts
Genuine Parts Company distributes automotive replacement parts, and industrial parts and materials. It operates in two segments: Automotive Parts Group and Industrial Parts Group segments. The company distributes automotive replacement parts for hybrid and electric vehicles, trucks, SUVs, buses, motorcycles, recreational vehicles, farm vehicles, small engines, farm equipment, marine equipment, and heavy duty equipment; and equipment and parts used by repair shops, service stations, fleet operators, automobile and truck dealers, leasing companies, bus and truck lines, mass merchandisers, farms, and individuals. It also distributes industrial replacement parts and related supplies, such as abrasives, adhesives, sealants and tape, bearings, chemicals, cutting tools, electrical, facility maintenance, hose and fittings, hydraulics, janitorial, mechanical power transmission, pneumatics, process pumps and equipment, safety, seals and gaskets, and tools and testing instruments, as well as maintenance, repair, and operation customers in aggregate and cement, automotive, chemical and allied products, equipment and machinery, equipment rental and leasing, fabricated metals, food and beverage, iron and steel, lumber and wood, oil and gas, pulp and paper, and rubber products. In addition, the company provides various services and repairs comprising gearbox and fluid power and process pump assembly and repair, hydraulic drive shaft repair, electrical panel assembly and repair, hose and gasket manufacture and assembly. It operates in the United States, Canada, France, the United Kingdom, Ireland, Germany, Poland, the Netherlands, Belgium, Spain, Portugal, Australia, New Zealand, Mexico, Indonesia, and Singapore. The company was incorporated in 1928 and is headquartered in Atlanta, Georgia.
About O’Reilly Automotive
O’Reilly Automotive, Inc., together with its subsidiaries, operates as a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, Puerto Rico, and Mexico. The company provides new and remanufactured automotive hard parts and maintenance items, such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts, fuel pumps, hoses, starters, temperature control, water pumps, antifreeze, appearance products, engine additives, filters, fluids, lighting products, and oil and wiper blades; and accessories, including floor mats, seat covers, and truck accessories. It also offers auto body paint and related materials, automotive tools, and professional service provider service equipment. In addition, the company provide enhanced services and programs comprising used oil, oil filter, and battery recycling; battery, wiper, and bulb replacement; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool program; drum and rotor resurfacing; custom hydraulic hoses; and professional paint shop mixing and related materials. Further, it offers do-it-yourself and professional service for domestic and imported automobiles, vans, and trucks. The company was founded in 1957 and is headquartered in Springfield, Missouri.
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