O'Reilly Auto Parts vs Carvana
O'Reilly Auto Parts vs Carvana Co. This page compares the two companies’ business models, financial performance, and market context in a neutral, accessible way. It explains how each organisation operates, generates revenue, and positions itself within the automotive parts and online retail sectors. Educational content, not financial advice.
O'Reilly Auto Parts vs Carvana Co. This page compares the two companies’ business models, financial performance, and market context in a neutral, accessible way. It explains how each organisation oper...
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.
Carvana hits all-time highs on 12-day winning streak ahead of S&P 500 inclusion.
- Upcoming S&P 500 addition guarantees passive inflows, boosting visibility and liquidity for the online used-car retailer.
- Record Q3 2025 results with 55% revenue growth to $5.65 billion and 44% retail unit increase to 156,000 vehicles signal sustained profitability.
- Stronger securitization pipeline enhances financing profits, positioning Carvana as a data-driven auto finance powerhouse beyond just vehicle sales.
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.
Carvana hits all-time highs on 12-day winning streak ahead of S&P 500 inclusion.
- Upcoming S&P 500 addition guarantees passive inflows, boosting visibility and liquidity for the online used-car retailer.
- Record Q3 2025 results with 55% revenue growth to $5.65 billion and 44% retail unit increase to 156,000 vehicles signal sustained profitability.
- Stronger securitization pipeline enhances financing profits, positioning Carvana as a data-driven auto finance powerhouse beyond just vehicle sales.
Which Baskets Do They Appear In?
Automotive
Find a car stock to fuel your investment strategy 🏎. This collection brings together carefully selected automotive companies, from traditional manufacturers to electric vehicle pioneers, curated by professional analysts to help you navigate this transformative industry.
Published: May 14, 2025
Explore BasketWhich Baskets Do They Appear In?
Automotive
Find a car stock to fuel your investment strategy 🏎. This collection brings together carefully selected automotive companies, from traditional manufacturers to electric vehicle pioneers, curated by professional analysts to help you navigate this transformative industry.
Published: May 14, 2025
Explore BasketInvestment Analysis
Pros
- O'Reilly Automotive operates a large, well-established retail network with over 5,800 stores across 47 states, providing strong market presence and accessibility.
- The company reported robust third quarter 2025 results with a 5.6% comparable store sales growth and a 12% increase in diluted earnings per share, indicating solid operational execution.
- O'Reilly maintains steady revenue growth and profitability, with trailing twelve-month revenue around $17.46 billion and net income of $2.48 billion, demonstrating financial strength.
Considerations
- The stock appears overvalued based on discounted cash flow analysis, suggesting it may be priced about 51% above fair value, implying limited margin for price appreciation.
- O'Reilly's price-to-earnings ratio is relatively high at about 33, which may limit upside potential and signals market concerns over valuation.
- Despite strong revenue, the company has faced some profit margin pressures and efficiency concerns, with mixed analyst sentiment on future growth sustainability.
Carvana
CVNA
Pros
- Carvana operates in the high-growth online used car sales sector, leveraging technology to disrupt traditional car dealerships.
- The company has rapidly expanded its delivery and logistics network, growing its geographic reach and customer convenience significantly in recent years.
- Carvana’s business model benefits from increasing consumer preference for online vehicle purchases, providing a strong secular growth tailwind.
Considerations
- Carvana has historically faced significant earnings volatility and operating losses, which pose continuing profitability and cash flow risks.
- The company operates in a highly competitive market with pressure from legacy used car dealers and other online platforms, making sustainable market share gains challenging.
- Carvana’s stock has experienced high volatility and investor sentiment swings, reflecting execution risks and uncertainties regarding long-term profitability.
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