O’Reilly Automotive (NASDAQ:ORLY) & Tilly’s (NYSE:TLYS) Head to Head Contrast

O’Reilly Automotive (NASDAQ:ORLY) and Tilly’s (NYSE:TLYS) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Insider & Institutional Ownership

85.0% of O’Reilly Automotive shares are held by institutional investors. Comparatively, 76.4% of Tilly’s shares are held by institutional investors. 0.8% of O’Reilly Automotive shares are held by insiders. Comparatively, 26.4% of Tilly’s shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for O’Reilly Automotive and Tilly’s, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
O’Reilly Automotive	0	4	16	0	2.80
Tilly’s	0	3	0	0	2.00

O’Reilly Automotive currently has a consensus price target of $107.26, suggesting a potential upside of 20.16%. Tilly’s has a consensus price target of $5.50, suggesting a potential upside of 19.18%. Given O’Reilly Automotive’s stronger consensus rating and higher probable upside, equities research analysts clearly believe O’Reilly Automotive is more favorable than Tilly’s.

Profitability

This table compares O’Reilly Automotive and Tilly’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
O’Reilly Automotive	14.27%	-232.45%	15.79%
Tilly’s	0.34%	2.37%	0.61%

Valuation and Earnings

This table compares O’Reilly Automotive and Tilly’s”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
O’Reilly Automotive	$17.78 billion	4.06	$2.54 billion	$3.14	28.43
Tilly’s	$553.59 million	0.26	-$17.45 million	$0.06	76.92

O’Reilly Automotive has higher revenue and earnings than Tilly’s. O’Reilly Automotive is trading at a lower price-to-earnings ratio than Tilly’s, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

O’Reilly Automotive has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, Tilly’s has a beta of 0.06, meaning that its stock price is 94% less volatile than the S&P 500.

Summary

O’Reilly Automotive beats Tilly’s on 11 of the 14 factors compared between the two stocks.

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.

About Tilly’s

Tilly’s, Inc. engages in the retail of casual apparel, footwear, and accessories. Its stores are located in retail centers, including malls, lifestyle centers, power centers, community centers, outlet centers, and street-front locations. The company was founded by Hezy Shaked and Tilly Levine in 1982 and is headquartered in Irvine, CA.