Head-To-Head Comparison: HALFORDS Grp PL/ADR (HLFDY) versus O’Reilly Automotive (ORLY)

O’Reilly Automotive (NASDAQ:ORLY) and HALFORDS Grp PL/ADR (OTCMKTS:HLFDY) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.

Profitability

This table compares O’Reilly Automotive and HALFORDS Grp PL/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
O’Reilly Automotive 14.09% 259.86% 16.49%
HALFORDS Grp PL/ADR N/A N/A N/A

Dividends

HALFORDS Grp PL/ADR pays an annual dividend of $0.55 per share and has a dividend yield of 6.8%. O’Reilly Automotive does not pay a dividend. HALFORDS Grp PL/ADR pays out 70.5% of its earnings in the form of a dividend.

Insider & Institutional Ownership

86.1% of O’Reilly Automotive shares are held by institutional investors. 3.1% of O’Reilly Automotive shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares O’Reilly Automotive and HALFORDS Grp PL/ADR’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
O’Reilly Automotive $8.98 billion 3.19 $1.13 billion $11.84 30.20
HALFORDS Grp PL/ADR $1.51 billion 0.53 $72.57 million $0.78 10.29

O’Reilly Automotive has higher revenue and earnings than HALFORDS Grp PL/ADR. HALFORDS Grp PL/ADR is trading at a lower price-to-earnings ratio than O’Reilly Automotive, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

O’Reilly Automotive has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, HALFORDS Grp PL/ADR has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for O’Reilly Automotive and HALFORDS Grp PL/ADR, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
O’Reilly Automotive 0 7 8 2 2.71
HALFORDS Grp PL/ADR 0 0 0 0 N/A

O’Reilly Automotive presently has a consensus price target of $341.00, suggesting a potential downside of 4.62%. Given O’Reilly Automotive’s higher probable upside, equities research analysts plainly believe O’Reilly Automotive is more favorable than HALFORDS Grp PL/ADR.

Summary

O’Reilly Automotive beats HALFORDS Grp PL/ADR on 15 of the 16 factors compared between the two stocks.

About O’Reilly Automotive

O'Reilly Automotive, Inc., together with its subsidiaries, engages in the retail of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. The company provides new and remanufactured automotive hard parts, such as alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, temperature controls, chassis parts, driveline parts, and engine parts; maintenance items comprising oil, antifreeze products, fluids, filters, wiper blades, lighting products, engine additives, and appearance products; and accessories, such as floor mats, seat covers, and truck accessories. Its stores offer auto body paint and related materials, automotive tools, and professional service provider service equipment. The company's stores also offer enhanced services and programs comprising used oil, oil filter, and battery recycling; battery, wiper, and bulb replacement; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool program; drum and rotor resurfacing; custom hydraulic hoses; professional paint shop mixing and related materials; and machine shops. Its stores provide do-it-yourself and professional service provider customers a selection of brand name, house brands, and private label products for domestic and imported automobiles, vans, and trucks. As of December 31, 2017, the company operated 5,019 stores in 47 states. O'Reilly Automotive, Inc. was founded in 1957 and is headquartered in Springfield, Missouri.

About HALFORDS Grp PL/ADR

Halfords Group plc, through its subsidiaries, retails automotive, leisure, and cycling products in the United Kingdom and the Republic of Ireland. It operates in two segments, Retail and Car Servicing. The company retails auto parts, accessories, cycles, and cycle accessories; and provides garage servicing and auto repair services. It also offers bicycle replacement for insurance companies under the Wheelies brand; and bikes and cycling parts, accessories, and clothing through online under the Tredz brand. It operates approximately 460 retail stores; and 20 Cycle Republic stores. Halfords Group plc was founded in 1892 and is based in Redditch, the United Kingdom.

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