Comparing Openlane (OPLN) & Its Competitors

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

Risk and Volatility

Openlane has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, Openlane’s peers have a beta of 2.47, suggesting that their average stock price is 147% more volatile than the S&P 500.

Institutional and Insider Ownership

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Openlane and its peers, 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	1821	6105	8988	656	2.48

Openlane presently has a consensus target price of $43.83, suggesting a potential upside of 25.53%. As a group, “Commercial Services & Supplies” companies have a potential upside of 10.63%. Given Openlane’s stronger consensus rating and higher possible upside, research analysts plainly believe Openlane is more favorable than its peers.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Openlane	$2.08 billion	$177.70 million	-41.08
Openlane Competitors	$2.46 billion	$141.06 million	22.87

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.

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%

Summary

Openlane beats its peers 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.