AAP vs. ORLY: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AAP and ORLY, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ORLY’s market capitalization of 78.07 billion USD is significantly greater than AAP’s 3.09 billion USD, highlighting its more substantial market valuation.
AAP’s beta of 1.09 points to significantly higher volatility compared to ORLY (beta: 0.60), suggesting AAP has greater potential for both gains and losses relative to market movements.
| Symbol | AAP | ORLY |
|---|---|---|
| Company Name | Advance Auto Parts, Inc. | O'Reilly Automotive, Inc. |
| Country | US | US |
| Sector | Consumer Cyclical | Consumer Cyclical |
| Industry | Specialty Retail | Specialty Retail |
| CEO | Shane M. O'Kelly | Brad W. Beckham |
| Price | 51.62 USD | 91.33 USD |
| Market Cap | 3.09 billion USD | 78.07 billion USD |
| Beta | 1.09 | 0.60 |
| Exchange | NYSE | NASDAQ |
| IPO Date | November 29, 2001 | April 23, 1993 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AAP and ORLY by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AAP
-14.70%
Specialty Retail Industry
- Max
- 70.52%
- Q3
- 29.03%
- Median
- 10.90%
- Q1
- -7.86%
- Min
- -57.43%
AAP has a negative Return on Equity of -14.70%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
ORLY
-165.40%
Specialty Retail Industry
- Max
- 70.52%
- Q3
- 29.03%
- Median
- 10.90%
- Q1
- -7.86%
- Min
- -57.43%
ORLY has a negative Return on Equity of -165.40%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
Return on Invested Capital
AAP
-8.92%
Specialty Retail Industry
- Max
- 29.46%
- Q3
- 13.75%
- Median
- 8.05%
- Q1
- 0.80%
- Min
- -17.95%
AAP has a negative Return on Invested Capital of -8.92%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
ORLY
35.29%
Specialty Retail Industry
- Max
- 29.46%
- Q3
- 13.75%
- Median
- 8.05%
- Q1
- 0.80%
- Min
- -17.95%
ORLY’s Return on Invested Capital of 35.29% is exceptionally high, placing it well beyond the typical range for the Specialty Retail industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
Net Profit Margin
AAP
-3.74%
Specialty Retail Industry
- Max
- 19.78%
- Q3
- 8.49%
- Median
- 3.43%
- Q1
- -0.69%
- Min
- -9.88%
AAP has a negative Net Profit Margin of -3.74%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
ORLY
14.10%
Specialty Retail Industry
- Max
- 19.78%
- Q3
- 8.49%
- Median
- 3.43%
- Q1
- -0.69%
- Min
- -9.88%
A Net Profit Margin of 14.10% places ORLY in the upper quartile for the Specialty Retail industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
AAP
-9.34%
Specialty Retail Industry
- Max
- 24.47%
- Q3
- 11.10%
- Median
- 5.85%
- Q1
- 0.66%
- Min
- -12.62%
AAP has a negative Operating Profit Margin of -9.34%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
ORLY
19.21%
Specialty Retail Industry
- Max
- 24.47%
- Q3
- 11.10%
- Median
- 5.85%
- Q1
- 0.66%
- Min
- -12.62%
An Operating Profit Margin of 19.21% places ORLY in the upper quartile for the Specialty Retail industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AAP | ORLY |
|---|---|---|
| Return on Equity (TTM) | -14.70% | -165.40% |
| Return on Assets (TTM) | -3.31% | 15.55% |
| Return on Invested Capital (TTM) | -8.92% | 35.29% |
| Net Profit Margin (TTM) | -3.74% | 14.10% |
| Operating Profit Margin (TTM) | -9.34% | 19.21% |
| Gross Profit Margin (TTM) | 36.96% | 51.23% |
Financial Strength
Current Ratio
AAP
1.27
Specialty Retail Industry
- Max
- 3.24
- Q3
- 1.99
- Median
- 1.42
- Q1
- 1.02
- Min
- 0.54
AAP’s Current Ratio of 1.27 aligns with the median group of the Specialty Retail industry, indicating that its short-term liquidity is in line with its sector peers.
ORLY
0.71
Specialty Retail Industry
- Max
- 3.24
- Q3
- 1.99
- Median
- 1.42
- Q1
- 1.02
- Min
- 0.54
ORLY’s Current Ratio of 0.71 falls into the lower quartile for the Specialty Retail industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
AAP
1.67
Specialty Retail Industry
- Max
- 2.72
- Q3
- 1.42
- Median
- 0.87
- Q1
- 0.35
- Min
- 0.01
AAP’s leverage is in the upper quartile of the Specialty Retail industry, with a Debt-to-Equity Ratio of 1.67. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
ORLY
-5.97
Specialty Retail Industry
- Max
- 2.72
- Q3
- 1.42
- Median
- 0.87
- Q1
- 0.35
- Min
- 0.01
ORLY has a Debt-to-Equity Ratio of -5.97, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.
Interest Coverage Ratio
AAP
-10.54
Specialty Retail Industry
- Max
- 37.34
- Q3
- 17.19
- Median
- 4.28
- Q1
- 0.11
- Min
- -23.60
AAP has a negative Interest Coverage Ratio of -10.54. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
ORLY
14.53
Specialty Retail Industry
- Max
- 37.34
- Q3
- 17.19
- Median
- 4.28
- Q1
- 0.11
- Min
- -23.60
ORLY’s Interest Coverage Ratio of 14.53 is positioned comfortably within the norm for the Specialty Retail industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AAP | ORLY |
|---|---|---|
| Current Ratio (TTM) | 1.27 | 0.71 |
| Quick Ratio (TTM) | 0.49 | 0.10 |
| Debt-to-Equity Ratio (TTM) | 1.67 | -5.97 |
| Debt-to-Asset Ratio (TTM) | 0.35 | 0.53 |
| Net Debt-to-EBITDA Ratio (TTM) | -3.78 | 2.12 |
| Interest Coverage Ratio (TTM) | -10.54 | 14.53 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AAP and ORLY. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AAP
1.94%
Specialty Retail Industry
- Max
- 5.54%
- Q3
- 1.52%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.94%, AAP offers a more attractive income stream than most of its peers in the Specialty Retail industry, signaling a strong commitment to shareholder returns.
ORLY
0.00%
Specialty Retail Industry
- Max
- 5.54%
- Q3
- 1.52%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ORLY currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio
AAP
-17.02%
Specialty Retail Industry
- Max
- 177.64%
- Q3
- 9.49%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AAP has a negative Dividend Payout Ratio of -17.02%. This typically means the company paid a dividend despite reporting a net loss, a situation that may signal financial instability.
ORLY
0.00%
Specialty Retail Industry
- Max
- 177.64%
- Q3
- 9.49%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ORLY has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | AAP | ORLY |
|---|---|---|
| Dividend Yield (TTM) | 1.94% | 0.00% |
| Dividend Payout Ratio (TTM) | -17.02% | 0.00% |
Valuation
Price-to-Earnings Ratio
AAP
-8.80
Specialty Retail Industry
- Max
- 81.45
- Q3
- 42.51
- Median
- 25.40
- Q1
- 12.72
- Min
- 1.88
AAP has a negative P/E Ratio of -8.80. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
ORLY
31.44
Specialty Retail Industry
- Max
- 81.45
- Q3
- 42.51
- Median
- 25.40
- Q1
- 12.72
- Min
- 1.88
ORLY’s P/E Ratio of 31.44 is within the middle range for the Specialty Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
AAP
-0.19
Specialty Retail Industry
- Max
- 5.90
- Q3
- 2.79
- Median
- 1.76
- Q1
- 0.69
- Min
- 0.00
AAP has a negative Forward PEG Ratio of -0.19. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
ORLY
3.47
Specialty Retail Industry
- Max
- 5.90
- Q3
- 2.79
- Median
- 1.76
- Q1
- 0.69
- Min
- 0.00
A Forward PEG Ratio of 3.47 places ORLY in the upper quartile for the Specialty Retail industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
Price-to-Sales Ratio
AAP
0.33
Specialty Retail Industry
- Max
- 5.26
- Q3
- 2.60
- Median
- 1.29
- Q1
- 0.41
- Min
- 0.06
In the lower quartile for the Specialty Retail industry, AAP’s P/S Ratio of 0.33 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
ORLY
4.63
Specialty Retail Industry
- Max
- 5.26
- Q3
- 2.60
- Median
- 1.29
- Q1
- 0.41
- Min
- 0.06
ORLY’s P/S Ratio of 4.63 is in the upper echelon for the Specialty Retail industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
AAP
1.41
Specialty Retail Industry
- Max
- 12.73
- Q3
- 6.96
- Median
- 3.28
- Q1
- 1.42
- Min
- 0.24
AAP’s P/B Ratio of 1.41 is in the lower quartile for the Specialty Retail industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
ORLY
-55.08
Specialty Retail Industry
- Max
- 12.73
- Q3
- 6.96
- Median
- 3.28
- Q1
- 1.42
- Min
- 0.24
ORLY has a negative P/B Ratio of -55.08, indicating its liabilities exceed its assets and result in negative shareholder equity. This is a critical warning sign of financial distress.
Valuation at a Glance
| Symbol | AAP | ORLY |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -8.80 | 31.44 |
| Forward PEG Ratio (TTM) | -0.19 | 3.47 |
| Price-to-Sales Ratio (P/S, TTM) | 0.33 | 4.63 |
| Price-to-Book Ratio (P/B, TTM) | 1.41 | -55.08 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -12.48 | 38.28 |
| EV-to-EBITDA (TTM) | -9.63 | 23.07 |
| EV-to-Sales (TTM) | 0.54 | 5.10 |