Chewy (NYSE:CHWY – Get Free Report) and O’Reilly Automotive (NASDAQ:ORLY – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.
Institutional and Insider Ownership
93.1% of Chewy shares are owned by institutional investors. Comparatively, 85.0% of O’Reilly Automotive shares are owned by institutional investors. 0.3% of Chewy shares are owned by insiders. Comparatively, 0.8% of O’Reilly Automotive shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Chewy and O’Reilly Automotive”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chewy | $12.60 billion | 0.77 | $222.80 million | $0.60 | 39.30 |
| O’Reilly Automotive | $17.78 billion | 4.00 | $2.54 billion | $3.14 | 27.99 |
O’Reilly Automotive has higher revenue and earnings than Chewy. O’Reilly Automotive is trading at a lower price-to-earnings ratio than Chewy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Chewy and O’Reilly Automotive’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chewy | 1.99% | 60.02% | 8.17% |
| O’Reilly Automotive | 14.27% | -232.45% | 15.79% |
Analyst Ratings
This is a summary of current ratings and price targets for Chewy and O’Reilly Automotive, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chewy | 0 | 7 | 18 | 1 | 2.77 |
| O’Reilly Automotive | 0 | 3 | 14 | 1 | 2.89 |
Chewy currently has a consensus target price of $31.27, suggesting a potential upside of 32.62%. O’Reilly Automotive has a consensus target price of $107.24, suggesting a potential upside of 22.01%. Given Chewy’s higher probable upside, analysts clearly believe Chewy is more favorable than O’Reilly Automotive.
Risk & Volatility
Chewy has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, O’Reilly Automotive has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.
Summary
O’Reilly Automotive beats Chewy on 8 of the 14 factors compared between the two stocks.
About Chewy
Chewy, Inc., together with its subsidiaries, engages in the pure play e-commerce business in the United States. It provides pet food and treats, pet supplies and pet medications, and other pet-health products, as well as pet services for dogs, cats, fish, birds, small pets, horses, and reptiles through its retail websites and mobile applications. The company was founded in 2010 and is based in Plantation, Florida.
About O’Reilly Automotive
O’Reilly Automotive, Inc., together with its subsidiaries, operates as a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, Puerto Rico, and Mexico. The company provides new and remanufactured automotive hard parts and maintenance items, such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts, fuel pumps, hoses, starters, temperature control, water pumps, antifreeze, appearance products, engine additives, filters, fluids, lighting products, and oil and wiper blades; and accessories, including floor mats, seat covers, and truck accessories. It also offers auto body paint and related materials, automotive tools, and professional service provider service equipment. In addition, the company provide 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; and professional paint shop mixing and related materials. Further, it offers do-it-yourself and professional service for domestic and imported automobiles, vans, and trucks. The company was founded in 1957 and is headquartered in Springfield, Missouri.
Receive News & Ratings for Chewy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Chewy and related companies with MarketBeat.com's FREE daily email newsletter.
