Analyzing Open Lending (LPRO) & Its Rivals

Open Lending (NASDAQ: LPRO) is one of 16 publicly-traded companies in the “Personal credit institutions” industry, but how does it compare to its competitors? We will compare Open Lending to similar companies based on the strength of its profitability, earnings, analyst recommendations, dividends, valuation, institutional ownership and risk.

Volatility and Risk

Open Lending has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, Open Lending’s competitors have a beta of 1.38, meaning that their average share price is 38% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Open Lending and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Open Lending 0 2 10 1 2.92
Open Lending Competitors 191 842 1061 62 2.46

Open Lending currently has a consensus price target of $41.33, indicating a potential upside of 7.84%. As a group, “Personal credit institutions” companies have a potential downside of 19.64%. Given Open Lending’s stronger consensus rating and higher probable upside, research analysts clearly believe Open Lending is more favorable than its competitors.

Valuation and Earnings

This table compares Open Lending and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Open Lending $108.89 million -$97.56 million 76.66
Open Lending Competitors $2.41 billion $325.50 million 16.86

Open Lending’s competitors have higher revenue and earnings than Open Lending. Open Lending is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

81.9% of Open Lending shares are held by institutional investors. Comparatively, 60.5% of shares of all “Personal credit institutions” companies are held by institutional investors. 26.0% of Open Lending shares are held by insiders. Comparatively, 18.8% of shares of all “Personal credit institutions” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Open Lending and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Open Lending -68.56% -50.19% 16.54%
Open Lending Competitors 15.91% 26.68% 2.55%

Summary

Open Lending beats its competitors on 7 of the 13 factors compared.

Open Lending Company Profile

Open Lending Corporation provides lending enablement and risk analytics solutions to credit unions, regional banks, and captive finance companies of original equipment manufacturers in the United States. It offers Lenders Protection Program (LPP), which is a Software as a Service platform that facilitates loan decision making and automated underwriting by third-party lenders and the issuance of credit default insurance through third-party insurance providers. The company's LPP products include loan analytics, risk-based loan pricing, risk modeling, and automated decision technology for automotive lenders. Open Lending Corporation was founded in 2000 and is based in Austin, Texas.

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