AutoZone vs O'Reilly Automotive Which Offers More Value?

AutoZone and O'Reilly Automotive are two major players in the automotive aftermarket retail industry, both offering a wide range of products and services for car owners and enthusiasts across the United States. Investors are constantly comparing the performance of these two stocks, analyzing factors such as revenue growth, profitability, and market share. Both companies have shown resilience and growth potential in the competitive automotive market, making them attractive options for investors seeking exposure to this sector.

AutoZone or O'Reilly Automotive?

When comparing AutoZone 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 AutoZone 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. AutoZone has a dividend yield of -%, while O'Reilly Automotive has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AutoZone reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 AutoZone P/E ratio at 20.73 and O'Reilly Automotive's P/E ratio at 30.39. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AutoZone P/B ratio is -11.62 while O'Reilly Automotive's P/B ratio is -45.53.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AutoZone has seen a 5-year revenue growth of 1.27%, while O'Reilly Automotive's is 1.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AutoZone's ROE at -54.23% and O'Reilly Automotive's ROE at -146.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $3117.96 for AutoZone and $1224.07 for O'Reilly Automotive. Over the past year, AutoZone's prices ranged from $2510.00 to $3256.37, with a yearly change of 29.74%. O'Reilly Automotive's prices fluctuated between $914.50 and $1241.29, with a yearly change of 35.73%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.