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HD vs ORLY

HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%
ORLY
O'Reilly Automotive, Inc.
BULLISH
Price
$98.80
Market Cap
$83.4B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
HD
23.1
ORLY
34.31
Forward P/E
HD
20.17
ORLY
2.2
P/B Ratio
HD
25.57
ORLY
-93.56
P/S Ratio
HD
1.99
ORLY
4.78
EV/EBITDA
HD
15.68
ORLY
23.67

Profitability

Gross Margin
HD
33.32%
ORLY
51.47%
Operating Margin
HD
10.08%
ORLY
20.74%
Profit Margin
HD
8.6%
ORLY
14.22%
ROE
HD
145.54%
ORLY
--
ROA
HD
12.98%
ORLY
13.66%

Growth

Revenue Growth
HD
-3.8%
ORLY
7.8%
Earnings Growth
HD
-14.2%
ORLY
12.6%

Financial Health

Debt/Equity
HD
5.14
ORLY
--
Current Ratio
HD
1.06
ORLY
0.76
Quick Ratio
HD
0.21
ORLY
0.09

Dividends

Dividend Yield
HD
2.83%
ORLY
--
Payout Ratio
HD
64.65%
ORLY
0.0%

AI Verdict

HD BEARISH

HD shows bearish fundamentals based on deterministic rules. Financial strength is strong (F-Score 6/9). Concerns include weak profitability or high valuation.

Strengths
Strong ROE of 145.5%
Risks
Premium vs Graham Number ($64.2)
Declining revenue (-3.8%)
High debt burden with D/E of 5.14
ORLY BULLISH

O'Reilly Automotive (ORLY) trades at a premium valuation with strong long-term price momentum (5Y +221.3%) and solid earnings growth (YoY EPS +11.8%), supported by best-in-class margins and ROA of 13.66%. Despite a concerning insider sell-off of $15.78M in the last six months and a weak current ratio of 0.76, the company outperforms peers in profitability and growth execution. ORLY’s P/E of 34.31 is high but justified relative to sector average of 57.61 and supported by consistent double-digit earnings growth and a buy-rated analyst consensus. The stock is near its 52-week low with a 21% 1Y return, offering a potential entry point ahead of mean-reverting price strength.

Strengths
Operating margin of 20.74% significantly exceeds sector average of 11.81%
Gross margin of 51.47% reflects strong pricing power and supply chain efficiency
ROA of 13.66% demonstrates superior asset utilization vs peers
Risks
Current ratio of 0.76 and quick ratio of 0.09 indicate severe liquidity constraints
Insider net selling of $15.78M over 6 months signals leadership skepticism
Price/Book of -93.56 suggests negative book value, raising balance sheet concerns

Compare Another Pair

HD vs ORLY: Head-to-Head Comparison

This page compares The Home Depot, Inc. (HD) and O'Reilly Automotive, Inc. (ORLY) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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