Openlane (OPLN) vs. Its Peers Critical Analysis

Openlane (NYSE:OPLN) is one of 354 publicly-traded companies in the “Commercial Services & Supplies” industry, but how does it contrast to its peers? We will compare Openlane to related companies based on the strength of its valuation, profitability, analyst recommendations, earnings, dividends, risk and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for Openlane and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Openlane	0	2	4	1	2.86
Openlane Competitors	1815	6098	8979	655	2.48

Openlane presently has a consensus price target of $43.83, suggesting a potential upside of 18.63%. As a group, “Commercial Services & Supplies” companies have a potential upside of 10.75%. Given Openlane’s stronger consensus rating and higher probable upside, analysts plainly believe Openlane is more favorable than its peers.

Profitability

This table compares Openlane and its peers’ 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	-61.39%	-127.51%	-1.36%

Volatility and Risk

Openlane has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, Openlane’s peers have a beta of 2.45, indicating that their average stock price is 145% more volatile than the S&P 500.

Valuation and Earnings

This table compares Openlane and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Openlane	$1.93 billion	$177.70 million	-43.47
Openlane Competitors	$2.43 billion	$140.15 million	22.81

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

Institutional and Insider Ownership

99.8% of Openlane shares are held by institutional investors. Comparatively, 39.2% of shares of all “Commercial Services & Supplies” companies are held by institutional investors. 2.2% of Openlane shares are held by insiders. Comparatively, 16.8% of shares of all “Commercial Services & Supplies” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

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

About Openlane

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.