Driven Brands (NASDAQ:DRVN) versus O’Reilly Automotive (NASDAQ:ORLY) Head to Head Survey

Driven Brands (NASDAQ:DRVN) and O’Reilly Automotive (NASDAQ:ORLY) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Earnings & Valuation

This table compares Driven Brands and O’Reilly Automotive”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Driven Brands	$2.34 billion	1.20	-$292.50 million	($1.81)	-9.41
O’Reilly Automotive	$16.71 billion	4.82	$2.39 billion	$2.72	34.61

O’Reilly Automotive has higher revenue and earnings than Driven Brands. Driven Brands 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.

Profitability

This table compares Driven Brands and O’Reilly Automotive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Driven Brands	-12.75%	19.61%	2.79%
O’Reilly Automotive	14.10%	-167.25%	16.26%

Insider & Institutional Ownership

77.1% of Driven Brands shares are owned by institutional investors. Comparatively, 85.0% of O’Reilly Automotive shares are owned by institutional investors. 2.3% of Driven Brands shares are owned by company insiders. Comparatively, 1.0% of O’Reilly Automotive shares are owned 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.

Volatility and Risk

Driven Brands has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, O’Reilly Automotive has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Driven Brands and O’Reilly Automotive, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Driven Brands	0	3	7	1	2.82
O’Reilly Automotive	0	2	14	2	3.00

Driven Brands presently has a consensus target price of $21.00, suggesting a potential upside of 23.31%. O’Reilly Automotive has a consensus target price of $96.02, suggesting a potential upside of 1.99%. Given Driven Brands’ higher possible upside, equities analysts clearly believe Driven Brands is more favorable than O’Reilly Automotive.

Summary

O’Reilly Automotive beats Driven Brands on 11 of the 15 factors compared between the two stocks.

About Driven Brands

Driven Brands Holdings Inc., together with its subsidiaries, provides automotive services to retail and commercial customers in the United States, Canada, and internationally. It offers various services, such as paint, collision, glass, repair, car wash, oil change, and maintenance services. The company also distributes automotive parts, including radiators, air conditioning components, and exhaust products to automotive repair shops, auto parts stores, body shops, and other auto repair outlets; windshields and glass accessories through a network of distribution centers; and consumable products, such as oil filters and wiper blades, as well as training services to repair and maintenance, and paint and collision shops. It sells its products and services under the CARSTAR, IMO, MAACO, Meineke Car Care Centers, PH Vitres D’Autos, Take 5 Oil Change, Take 5 Car Wash, Auto Glass Now, Fix Auto USA, and 1-800-Radiator & A/C, Spire Supply, and Automotive Training Institute brands. The company was founded in 1972 and is headquartered in Charlotte, North Carolina.

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.