ORLY vs AAP

For growth investors, O'Reilly Automotive, Inc.

(ORLY) is the stronger pick with 6. 4% revenue growth year-over-year, versus -5. 4% for Advance Auto Parts, Inc. (AAP). O'Reilly Automotive, Inc. (ORLY) offers the better valuation at 31. 9x trailing P/E (29. 2x forward), making it the more compelling value choice. Analysts rate O'Reilly Automotive, Inc. (ORLY) a "Buy" — based on 47 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, O'Reilly Automotive, Inc.

(ORLY) is the cheapest at 31. 9x versus Advance Auto Parts, Inc. at 79. 5x. On forward P/E, Advance Auto Parts, Inc. is actually cheaper at 21. 0x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, O'Reilly Automotive, Inc.

(ORLY) delivered a total return of +153. 4%, compared to -64. 9% for Advance Auto Parts, Inc. (AAP). Over 10 years, the gap is even starker: ORLY returned +434. 6% versus AAP's -51. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), O'Reilly Automotive, Inc.

(ORLY) is the lower-risk stock at 0. 14β versus Advance Auto Parts, Inc. 's 1. 42β — meaning AAP is approximately 896% more volatile than ORLY relative to the S&P 500.

By revenue growth (latest reported year), O'Reilly Automotive, Inc.

(ORLY) is pulling ahead at 6. 4% versus -5. 4% for Advance Auto Parts, Inc. (AAP). On earnings-per-share growth, the picture is similar: Advance Auto Parts, Inc. grew EPS 113. 0% year-over-year, compared to 9. 6% for O'Reilly Automotive, Inc.. Over a 3-year CAGR, ORLY leads at 7. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

O'Reilly Automotive, Inc.

(ORLY) is the more profitable company, earning 14. 3% net margin versus 0. 5% for Advance Auto Parts, Inc. — meaning it keeps 14. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ORLY leads at 19. 5% versus 1. 9% for AAP. At the gross margin level — before operating expenses — ORLY leads at 51. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Advance Auto Parts, Inc.

(AAP) trades at 21. 0x forward P/E versus 29. 2x for O'Reilly Automotive, Inc. — 8. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ORLY: 16. 9% to $110. 80.

In this comparison, AAP (1.

7% yield) pays a dividend. ORLY does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, O'Reilly Automotive, Inc.

(ORLY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 14), +434. 6% 10Y return). Both have compounded well over 10 years (ORLY: +434. 6%, AAP: -51. 2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

AAP pays a dividend while ORLY does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.