U.S. Auto Parts Network (NASDAQ: PRTS) and O’Reilly Automotive (NASDAQ:ORLY) are both retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitabiliy, analyst recommendations, risk, institutional ownership and dividends.

Earnings & Valuation

This table compares U.S. Auto Parts Network and O’Reilly Automotive’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
U.S. Auto Parts Network $303.66 million 0.31 $8.58 million ($0.01) -272.00
O’Reilly Automotive $8.77 billion 2.06 $1.94 billion $11.42 17.96

O’Reilly Automotive has higher revenue and earnings than U.S. Auto Parts Network. U.S. Auto Parts Network 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for U.S. Auto Parts Network and O’Reilly Automotive, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
U.S. Auto Parts Network 0 0 1 0 3.00
O’Reilly Automotive 0 11 7 1 2.47

U.S. Auto Parts Network currently has a consensus price target of $5.00, suggesting a potential upside of 83.82%. O’Reilly Automotive has a consensus price target of $240.11, suggesting a potential upside of 17.10%. Given U.S. Auto Parts Network’s stronger consensus rating and higher probable upside, equities analysts plainly believe U.S. Auto Parts Network is more favorable than O’Reilly Automotive.

Volatility & Risk

U.S. Auto Parts Network has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500. Comparatively, O’Reilly Automotive has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Insider and Institutional Ownership

67.4% of U.S. Auto Parts Network shares are owned by institutional investors. Comparatively, 92.5% of O’Reilly Automotive shares are owned by institutional investors. 40.7% of U.S. Auto Parts Network shares are owned by company insiders. Comparatively, 3.1% of O’Reilly Automotive shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares U.S. Auto Parts Network and O’Reilly Automotive’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
U.S. Auto Parts Network -0.09% 6.07% 1.72%
O’Reilly Automotive 12.23% 72.22% 14.36%

Summary

O’Reilly Automotive beats U.S. Auto Parts Network on 10 of the 14 factors compared between the two stocks.

About U.S. Auto Parts Network

U.S. Auto Parts Network, Inc. is an online provider of automotive aftermarket parts and repair information. The Company is an online provider of aftermarket auto parts, including collision parts, engine parts, and performance parts and accessories. The Company operates through two segments: Base USAP, which is an auto parts business, and AutoMD, an online automotive repair source. The Company’s Websites provide customers with a range of stock keeping units (SKUs) with detailed product descriptions, attributes and photographs. The Company’s product database maps its SKUs to product applications based on vehicle makes, models and years. The Company primarily sells its products to individual consumers through its network of Websites and online marketplaces. The Company classifies its products into various categories, including collision parts serving the body repair segment, engine parts to serve the replacement/wear parts market, and performance parts and accessories.

About O’Reilly Automotive

O’Reilly Automotive, Inc. is a specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States. The Company sells its products to both do-it-yourself (DIY) and professional service provider customers. The Company’s product line includes new and remanufactured automotive hard parts, such as alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, temperature control, chassis parts, driveline parts and engine parts; maintenance items, such as oil, antifreeze, fluids, filters, wiper blades, lighting, engine additives and appearance products, and accessories, such as floor mats, seat covers and truck accessories. The Company’s stores offer various services and programs to its customers, such as used oil, oil filter and battery recycling; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool program; custom hydraulic hoses, and machine shops.

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