O’Reilly Automotive (NASDAQ:ORLY – Get Free Report) and EVgo (NASDAQ:EVGO – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.
Analyst Recommendations
This is a summary of recent recommendations and price targets for O’Reilly Automotive and EVgo, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| O’Reilly Automotive | 0 | 4 | 14 | 1 | 2.84 |
| EVgo | 2 | 1 | 6 | 0 | 2.44 |
O’Reilly Automotive currently has a consensus target price of $106.50, indicating a potential upside of 25.17%. EVgo has a consensus target price of $2.93, indicating a potential upside of 129.69%. Given EVgo’s higher probable upside, analysts plainly believe EVgo is more favorable than O’Reilly Automotive.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| O’Reilly Automotive | $17.78 billion | 3.87 | $2.54 billion | $3.14 | 27.10 |
| EVgo | $402.95 million | 1.00 | -$41.57 million | ($0.40) | -3.19 |
O’Reilly Automotive has higher revenue and earnings than EVgo. EVgo 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 O’Reilly Automotive and EVgo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| O’Reilly Automotive | 14.27% | -232.45% | 15.79% |
| EVgo | -13.50% | N/A | -5.75% |
Volatility & Risk
O’Reilly Automotive has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, EVgo has a beta of 2.87, meaning that its share price is 187% more volatile than the S&P 500.
Institutional & Insider Ownership
85.0% of O’Reilly Automotive shares are owned by institutional investors. Comparatively, 17.4% of EVgo shares are owned by institutional investors. 0.8% of O’Reilly Automotive shares are owned by insiders. Comparatively, 0.1% of EVgo shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
O’Reilly Automotive beats EVgo on 12 of the 15 factors compared between the two stocks.
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.
About EVgo
EVgo, Inc. owns and operates a direct current fast charging network for electric vehicles (EVs) in the United States. The company offers electricity directly to drivers, who access its publicly available networked chargers; original equipment manufacturer charging and related services; fleet and rideshare public charging services; and charging as a service and fleet dedicated charging services. It also provides ancillary services, such as customization of digital applications, charging data integration, loyalty programs, access to chargers behind parking lot or garage pay gates, microtargeted advertising, and charging reservations; and hardware, design, and construction services for charging sites, as well as ongoing operations, maintenance, and networking and software integration solutions through eXtend. In addition, it offers PlugShare such as data, research, and advertising services and equipment procurement and operational services. EVgo, Inc. was incorporated in 2010 and is headquartered in Los Angeles, California.EVgo, Inc. operates as a subsidiary of EVgo Holdings LLC.
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