Analyzing Openlane (OPLN) & Its Peers

Openlane (NYSE:OPLN) is one of 355 public companies in the “Commercial Services & Supplies” industry, but how does it weigh in compared to its rivals? We will compare Openlane to related businesses based on the strength of its analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Analyst Ratings

This is a summary of recent ratings and price targets for Openlane and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Openlane	0	2	4	1	2.86
Openlane Competitors	1850	6125	9015	660	2.48

Openlane currently has a consensus target price of $43.83, indicating a potential upside of 26.72%. As a group, “Commercial Services & Supplies” companies have a potential upside of 11.64%. Given Openlane’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Openlane is more favorable than its rivals.

Earnings and Valuation

This table compares Openlane and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Openlane	$1.93 billion	$177.70 million	-40.70
Openlane Competitors	$2.43 billion	$139.00 million	17.04

Openlane’s rivals have higher revenue, but lower earnings than Openlane. Openlane is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

99.8% of Openlane shares are held by institutional investors. Comparatively, 39.6% of shares of all “Commercial Services & Supplies” companies are held by institutional investors. 2.2% of Openlane shares are held by insiders. Comparatively, 16.7% of shares of all “Commercial Services & Supplies” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Openlane and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Openlane	9.67%	12.81%	3.62%
Openlane Competitors	-59.02%	-118.76%	-1.30%

Volatility & Risk

Openlane has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Openlane’s rivals have a beta of 2.42, meaning that their average stock price is 142% more volatile than the S&P 500.

Summary

Openlane beats its rivals on 9 of the 13 factors compared.

Openlane Company Profile

OPENLANE Inc. provides sellers and buyers across the wholesale used vehicle industry with technology-driven remarketing solutions. The company’s end-to-end platform supports whole car, financing, logistics and other ancillary and related services. OPENLANE Inc., formerly known as KAR Auction Services Inc., is based in CARMEL, Ind.