O'Reilly Auto Parts vs AutoZone

This page compares O'Reilly Auto Parts and AutoZone, examining business models, financial performance, and market context in a neutral, accessible way. It outlines how each company operates, earns revenue, and positions itself within the automotive parts sector for readers seeking informational context. Educational content, not financial advice.

About The Companies

O'Reilly Auto Parts (ORLY)

O'Reilly Automotive Inc. (ORLY) is a leading US speciality retailer of automotive aftermarket parts, tools, supplies and accessories. Investors should know it operates a large store network and omni‑channel platform serving DIY and professional customers, generating substantial free cash flow that management often returns via reinvestment, dividends and share buybacks. The company benefits from steady demand for vehicle maintenance and repair, which can be more resilient than discretionary retail in downturns, but it remains exposed to the automotive cycle, fuel prices and parts supply dynamics. Competitive pressures come from peers and online sellers, and margins depend on inventory management and supplier relationships. Key metrics to watch include same‑store sales, gross margin, inventory turnover and capital allocation choices. This summary is for educational purposes and not personalised advice; values can rise or fall and past performance is not a guide to the future.

AutoZone (AZO)

AutoZone, Inc. (AZO) is a US-based specialty retailer of automotive replacement parts and accessories, serving both DIY (do‑it‑yourself) customers and professional mechanics. With a market capitalisation around $66.8bn, AutoZone operates a large store network and a growing online presence, backed by centralised inventory and logistics. Investors typically watch its same‑store sales, gross margins, and inventory turns as indicators of operational health. The company has historically prioritised cash generation, reinvestment and share repurchases, though past actions may not predict future policy. Key strengths include brand recognition, scale in the aftermarket parts segment and resilience to economic cycles that drive vehicle maintenance. Important risks include cyclical auto demand, competition from online and big‑box retailers, supply‑chain disruptions and shifts in vehicle technology. This summary is educational only and not personal financial advice — investments carry risk and can fall in value; consider your goals and consult a professional before acting.

Comparison Snapshot

Key Financial Metrics

ORLY

Metric

AZO

$79.44B

Market Cap

$57.15B

18.74%

Potential Profit

28.85%

Buy

Analyst Rating

Buy

Why It's Moving

O'Reilly Automotive faces sector headwinds as peer pressures overshadow its recent earnings strength.

Stock fell 4.2-4.8% after AutoZone's report highlighted gross margin decline from LIFO impacts and higher operating costs, signaling potential risks across the sector.
ORLY's Q3 results topped estimates with $0.85 EPS versus $0.83 expected and $4.71B revenue against $4.69B forecast, reinforcing market share gains.
Raised 2025 comparable store sales guidance to 4-5% and Baird's new Outperform rating underscore confidence in sales productivity amid competition.

Sentiment:

🌋Volatile

AutoZone Dips on Q1 Earnings Miss, but Analysts See Buying Opportunity in Resilient Growth

Net sales rose 8.2% to $4.63B, driven by 4.8% U.S. comp sales growth and 11.2% internationally, outpacing many retailers despite slightly missing revenue forecasts.[1][2]
EPS of $31.04 trailed $32.40 consensus due to a non-cash inventory charge and investments in stores/supply chain, pressuring gross margins down 2 points.[2]
No analyst downgrades post-earnings; consensus points to ~30% upside, with institutions poised to buy the dip at key support levels.[1]

Sentiment:

🐃Bullish

O'Reilly Automotive faces sector headwinds as peer pressures overshadow its recent earnings strength.

Stock fell 4.2-4.8% after AutoZone's report highlighted gross margin decline from LIFO impacts and higher operating costs, signaling potential risks across the sector.
ORLY's Q3 results topped estimates with $0.85 EPS versus $0.83 expected and $4.71B revenue against $4.69B forecast, reinforcing market share gains.
Raised 2025 comparable store sales guidance to 4-5% and Baird's new Outperform rating underscore confidence in sales productivity amid competition.

Sentiment:

🌋Volatile

AutoZone Dips on Q1 Earnings Miss, but Analysts See Buying Opportunity in Resilient Growth

Net sales rose 8.2% to $4.63B, driven by 4.8% U.S. comp sales growth and 11.2% internationally, outpacing many retailers despite slightly missing revenue forecasts.[1][2]
EPS of $31.04 trailed $32.40 consensus due to a non-cash inventory charge and investments in stores/supply chain, pressuring gross margins down 2 points.[2]
No analyst downgrades post-earnings; consensus points to ~30% upside, with institutions poised to buy the dip at key support levels.[1]

Sentiment:

🐃Bullish

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