WallStSmart

Lear Corporation (LEA)vsO’Reilly Automotive Inc (ORLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lear Corporation generates 31% more annual revenue ($23.26B vs $17.78B). ORLY leads profitability with a 14.3% profit margin vs 1.9%. LEA appears more attractively valued with a PEG of 0.36. ORLY earns a higher WallStSmart Score of 60/100 (C).

LEA

Buy

55

out of 100

Grade: C

Growth: 3.3Profit: 5.0Value: 7.3Quality: 4.5
Piotroski: 3/9

ORLY

Buy

60

out of 100

Grade: C

Growth: 6.0Profit: 8.0Value: 8.0Quality: 4.0
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LEASignificantly Overvalued (-146.9%)

Margin of Safety

-146.9%

Fair Value

$56.24

Current Price

$122.23

$65.99 premium

UndervaluedFair: $56.24Overvalued
ORLYOvervalued (-9.1%)

Margin of Safety

-9.1%

Fair Value

$86.25

Current Price

$91.16

$4.91 premium

UndervaluedFair: $86.25Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LEA3 strengths · Avg: 9.3/10
PEG RatioValuation
0.3610/10

Growing faster than its price suggests

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

P/E RatioValuation
14.8x8/10

Attractively priced relative to earnings

ORLY2 strengths · Avg: 9.5/10
Return on EquityProfitability
58.6%10/10

Every $100 of equity generates 59 in profit

Market CapQuality
$74.27B9/10

Large-cap with strong market position

Areas to Watch

LEA4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

Operating MarginProfitability
4.4%3/10

Operating margin of 4.4%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

ORLY3 concerns · Avg: 3.7/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

P/E RatioValuation
29.6x4/10

Moderate valuation

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : LEA

The strongest argument for LEA centers on PEG Ratio, Price/Book, P/E Ratio. PEG of 0.36 suggests the stock is reasonably priced for its growth.

Bull Case : ORLY

The strongest argument for ORLY centers on Return on Equity, Market Cap.

Bear Case : LEA

The primary concerns for LEA are Revenue Growth, Profit Margin, Operating Margin. Thin 1.9% margins leave little buffer for downturns.

Bear Case : ORLY

The primary concerns for ORLY are PEG Ratio, P/E Ratio, Piotroski F-Score.

Key Dynamics to Monitor

LEA carries more volatility with a beta of 1.25 — expect wider price swings.

ORLY is growing revenue faster at 7.8% — sustainability is the question.

ORLY generates stronger free cash flow (364M), providing more financial flexibility.

Monitor AUTO PARTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ORLY scores higher overall (60/100 vs 55/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Lear Corporation

CONSUMER CYCLICAL · AUTO PARTS · USA

Lear Corporation designs, develops, designs, manufactures, assembles, and supplies automotive seats, electrical distribution systems, and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. The company is headquartered in Southfield, Michigan.

O’Reilly Automotive Inc

CONSUMER CYCLICAL · AUTO PARTS · USA

O'Reilly Auto Parts is an American auto parts retailer that provides automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States serving both the professional service providers and do-it-yourself customers.

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