In today’s competitive market, understanding the nuances of companies within the automotive sector is crucial for savvy investors. I will compare Copart, Inc. (CPRT) and O’Reilly Automotive, Inc. (ORLY), two prominent players in the auto industry—one specializing in vehicle remarketing and the other in automotive parts. Both companies not only share a common market space but also demonstrate innovative strategies to capture consumer interest. Join me as we uncover which of these firms presents the most intriguing investment opportunity for you.
Table of contents
Company Overview
Copart, Inc. Overview
Copart, Inc. specializes in online auctions and vehicle remarketing services, operating across various countries, including the U.S., U.K., and several European and Middle Eastern nations. Founded in 1982 and headquartered in Dallas, Texas, the company provides a wide range of services that focus on processing and selling vehicles through innovative online bidding technologies. Their clientele includes insurance companies, banks, charities, and individual vehicle sellers. With a market cap of approximately $37.7B, Copart positions itself as a leader in the auto dealership industry, emphasizing efficiency and accessibility in vehicle sales.
O’Reilly Automotive, Inc. Overview
O’Reilly Automotive, Inc. is a prominent retailer and supplier of automotive aftermarket parts, tools, and accessories, primarily in the U.S. Founded in 1957 and based in Springfield, Missouri, the company operates over 5,700 stores and serves both do-it-yourself customers and professional service providers. With a market cap of about $85.9B, O’Reilly focuses on offering a comprehensive selection of automotive parts and enhanced services, contributing to its strong presence in the auto parts sector.
Key similarities and differences
Both Copart and O’Reilly operate within the consumer cyclical sector, emphasizing the automotive industry. However, while Copart focuses on vehicle auctions and remarketing, O’Reilly centers on the retail and supply of automotive parts. This distinction highlights their differing business models, catering to unique aspects of the automotive market.
Income Statement Comparison
In this section, I present a comparative income statement for Copart, Inc. (CPRT) and O’Reilly Automotive, Inc. (ORLY) based on their most recent fiscal year.
| Metric | Copart, Inc. (CPRT) | O’Reilly Automotive, Inc. (ORLY) |
|---|---|---|
| Market Cap | 37.73B | 85.93B |
| Revenue | 4.65B | 16.71B |
| EBITDA | 2.11B | 3.73B |
| EBIT | 1.90B | 3.27B |
| Net Income | 1.55B | 2.39B |
| EPS | 1.61 | 2.73 |
| Fiscal Year | 2025 | 2024 |
Interpretation of Income Statement
Over the observed fiscal periods, both companies have shown significant growth in revenue, with CPRT increasing from 3.87B in FY 2024 to 4.65B in FY 2025, while ORLY’s revenue grew from 15.81B in FY 2023 to 16.71B in FY 2024. CPRT’s net income rose notably from 1.36B to 1.55B, indicating improved margins, whereas ORLY’s net income increased from 2.35B to 2.39B, reflecting a more stable performance. Overall, while both companies experienced growth, CPRT demonstrated a more robust improvement in profitability, suggesting effective cost management and operational efficiency.
Financial Ratios Comparison
The following table provides a comparative overview of key financial metrics and ratios for Copart, Inc. (CPRT) and O’Reilly Automotive, Inc. (ORLY) as of the most recent fiscal year.
| Metric | CPRT | ORLY |
|---|---|---|
| ROE | 16.90% | -1.74% |
| ROIC | 14.67% | 36.26% |
| P/E | 28.19 | 24.49 |
| P/B | 4.76 | -33.03 |
| Current Ratio | 8.25 | 0.70 |
| Quick Ratio | 8.19 | 0.09 |
| D/E | 0.01 | -5.78 |
| Debt-to-Assets | 0.01 | 0.53 |
| Interest Coverage | 0 | 15.81 |
| Asset Turnover | 0.46 | 1.14 |
| Fixed Asset Turnover | 1.26 | 2.11 |
| Payout Ratio | 0 | 0 |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
Analyzing the metrics, CPRT displays a robust current and quick ratio, indicating strong liquidity. However, its negative interest coverage suggests a potential risk in managing debt obligations. Conversely, ORLY’s strong ROIC reflects effective capital utilization despite its negative equity ratios, indicating financial distress. Investors should weigh these factors carefully when considering investment in either company.
Dividend and Shareholder Returns
Neither Copart, Inc. (CPRT) nor O’Reilly Automotive, Inc. (ORLY) pays dividends, which is indicative of their focus on reinvestment for growth. Both companies are in high growth phases, prioritizing expansion and capital expenditure over shareholder distributions. Copart’s robust free cash flow supports its capital allocation strategy, while O’Reilly’s significant operating cash flow also allows for potential share buybacks, enhancing shareholder value. Ultimately, this approach may support sustainable long-term value creation despite the lack of immediate cash returns.
Strategic Positioning
In the automotive sector, Copart, Inc. (CPRT) holds a market cap of approximately 37.7B, primarily focused on online vehicle auctions, whereas O’Reilly Automotive, Inc. (ORLY) leads with a market cap of about 85.9B, providing aftermarket auto parts. Competitive pressure is evident as both companies innovate to enhance their services. Copart faces challenges from technological disruption in vehicle sales, while O’Reilly must adapt to the increasing demand for electric vehicle components. Both companies must strategically navigate these dynamics to maintain their market positions.
Stock Comparison
In this analysis, I will delve into the stock price movements and trading dynamics of Copart, Inc. (CPRT) and O’Reilly Automotive, Inc. (ORLY) over the past year, focusing on key price changes and overall trends.
Trend Analysis
Copart, Inc. (CPRT) Over the past year, CPRT has experienced a significant price change of -16.26%, indicating a bearish trend. The stock has shown notable volatility with a standard deviation of 5.36. The highest price reached was 63.84, while the lowest was 38.98, reflecting a trend characterized by deceleration. Additionally, in the recent analysis period (from September 14, 2025, to November 30, 2025), the stock further declined by -19.46%, with a trend slope of -0.7, signaling continued downward pressure.
O’Reilly Automotive, Inc. (ORLY) In stark contrast, ORLY has demonstrated a robust bullish trend with a remarkable price change of 64.86% over the last year. The stock’s volatility is seen with a standard deviation of 12.11, while it has reached a high of 107.5 and a low of 61.69. However, in the recent period (from September 14, 2025, to November 30, 2025), ORLY’s price decreased by -5.4%, with a trend slope of -0.74, suggesting a deceleration in its recent growth.
In summary, while CPRT is experiencing a bearish trend with notable declines, ORLY has shown strong overall performance, despite recent fluctuations indicating some potential shifts in momentum.
Analyst Opinions
Recent analyst recommendations indicate a mixed outlook for key stocks in the automotive sector. For Copart, Inc. (CPRT), analysts have assigned a rating of B+, highlighting strong return on assets (5) and return on equity (4) as key strengths. In contrast, O’Reilly Automotive, Inc. (ORLY) holds a B- rating, with analysts pointing to low return on equity (1) and debt-to-equity (1) as concerns. The consensus for CPRT leans towards a buy, while ORLY is on a cautious hold.
Stock Grades
I have gathered the latest stock grades from reliable grading companies for two notable companies: Copart, Inc. (CPRT) and O’Reilly Automotive, Inc. (ORLY). Here’s a summary of their current ratings.
Copart, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | maintain | Neutral | 2025-11-24 |
| Baird | maintain | Outperform | 2025-11-21 |
| Barclays | maintain | Underweight | 2025-11-21 |
| Stephens & Co. | maintain | Equal Weight | 2025-09-05 |
| HSBC | upgrade | Buy | 2025-09-04 |
| Baird | maintain | Outperform | 2025-07-17 |
| JP Morgan | maintain | Neutral | 2025-05-23 |
| Baird | maintain | Outperform | 2025-02-21 |
| JP Morgan | maintain | Neutral | 2024-11-19 |
| Baird | maintain | Outperform | 2024-09-05 |
O’Reilly Automotive, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | maintain | Equal Weight | 2025-10-27 |
| Goldman Sachs | maintain | Buy | 2025-10-24 |
| RBC Capital | maintain | Outperform | 2025-10-24 |
| Morgan Stanley | maintain | Overweight | 2025-10-23 |
| UBS | maintain | Buy | 2025-10-15 |
| Wells Fargo | maintain | Overweight | 2025-10-15 |
| TD Cowen | maintain | Buy | 2025-09-15 |
| Evercore ISI Group | maintain | Outperform | 2025-08-12 |
| Barclays | maintain | Equal Weight | 2025-07-25 |
| Evercore ISI Group | maintain | Outperform | 2025-07-25 |
Overall, both companies have shown a tendency toward maintaining their current grades, with Copart experiencing a notable upgrade from HSBC to a Buy rating. Meanwhile, O’Reilly Automotive maintains a strong position with multiple Buy and Outperform ratings. This trend suggests cautious optimism for investors considering these stocks for their portfolios.
Target Prices
The consensus target prices for Copart, Inc. and O’Reilly Automotive, Inc. reflect optimistic expectations among analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Copart, Inc. (CPRT) | 62 | 33 | 49 |
| O’Reilly Automotive, Inc. (ORLY) | 121 | 91 | 111.9 |
For Copart, the consensus target of 49 indicates a potential upside from its current price of 38.98. In contrast, O’Reilly’s consensus of 111.9 suggests strong confidence, given its current price of 101.68.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Copart, Inc. (CPRT) and O’Reilly Automotive, Inc. (ORLY) based on the most recent data.
| Criterion | Copart, Inc. (CPRT) | O’Reilly Automotive, Inc. (ORLY) |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | High | Moderate |
| Innovation | Strong | Moderate |
| Global presence | Strong | Limited |
| Market Share | High | Very High |
| Debt level | Very Low | High |
Key takeaways: Copart shows strong profitability and low debt, making it a stable choice. In contrast, O’Reilly has a high market share but faces challenges with debt levels, which could affect its financial stability.
Risk Analysis
The table below summarizes key risks associated with Copart, Inc. (CPRT) and O’Reilly Automotive, Inc. (ORLY).
| Metric | Copart, Inc. (CPRT) | O’Reilly Automotive, Inc. (ORLY) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Moderate | High |
| Geopolitical Risk | Low | Moderate |
In synthesizing the risks, I observe that O’Reilly faces significant operational and environmental risks due to its extensive inventory and reliance on global supply chains. Conversely, Copart is more insulated from regulatory pressures but still faces market volatility.
Which one to choose?
When comparing Copart, Inc. (CPRT) and O’Reilly Automotive, Inc. (ORLY), several key metrics stand out. CPRT has a higher net profit margin of 33.4% versus ORLY’s 14.3%, indicating stronger profitability. CPRT’s debt-to-equity ratio is minimal at 0.01, showcasing financial stability, while ORLY’s is negative, suggesting potential solvency issues. In terms of stock performance, CPRT has experienced a bearish trend with a 16.3% decline recently, while ORLY has shown a bullish trend with a 64.9% increase over the same period. Analysts rate CPRT at B+, indicating a better overall score than ORLY’s B-.
For growth-focused investors, CPRT appears more favorable, whereas those seeking stability might consider ORLY, albeit with caution due to its financial metrics. However, both companies face industry risks, including market competition and valuation pressures.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Copart, Inc. and O’Reilly Automotive, Inc. to enhance your investment decisions:
