Advance Auto Parts vs O'Reilly Automotive Which Is More Reliable?

Advance Auto Parts and O'Reilly Automotive are two major players in the automotive retail industry. Both companies have experienced growth and success in recent years, but have differing approaches to their business strategies. Advance Auto Parts focuses on a wide range of parts and accessories for both professional mechanics and DIY enthusiasts, while O'Reilly Automotive has a strong presence in the aftermarket auto parts sector. Investors looking to capitalize on the automotive industry may consider comparing these two stocks for potential investment opportunities.

Advance Auto Parts or O'Reilly Automotive?

When comparing Advance Auto Parts and O'Reilly Automotive, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Advance Auto Parts and O'Reilly Automotive.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Advance Auto Parts has a dividend yield of 2.28%, while O'Reilly Automotive has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Advance Auto Parts reports a 5-year dividend growth of 52.81% year and a payout ratio of 244.17%. On the other hand, O'Reilly Automotive reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Advance Auto Parts P/E ratio at 106.79 and O'Reilly Automotive's P/E ratio at 30.86. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Advance Auto Parts P/B ratio is 1.01 while O'Reilly Automotive's P/B ratio is -51.21.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Advance Auto Parts has seen a 5-year revenue growth of 0.46%, while O'Reilly Automotive's is 1.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Advance Auto Parts's ROE at 0.95% and O'Reilly Automotive's ROE at -155.25%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $42.91 for Advance Auto Parts and $1267.22 for O'Reilly Automotive. Over the past year, Advance Auto Parts's prices ranged from $35.59 to $88.56, with a yearly change of 148.83%. O'Reilly Automotive's prices fluctuated between $914.50 and $1281.95, with a yearly change of 40.18%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.