Financial Survey: Openlane (OPLN) and Its Competitors

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Openlane	0	3	4	0	2.57
Openlane Competitors	1905	6250	9032	664	2.47

Openlane presently has a consensus price target of $43.83, indicating a potential upside of 27.81%. As a group, “Commercial Services & Supplies” companies have a potential upside of 10.38%. Given Openlane’s stronger consensus rating and higher possible upside, analysts clearly 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	9.23%	12.74%	3.62%
Openlane Competitors	-49.89%	-119.11%	-1.28%

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Openlane	$1.93 billion	$177.70 million	-46.35
Openlane Competitors	$2.49 billion	$141.50 million	11.74

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.

Risk and Volatility

Openlane has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Openlane’s peers have a beta of 2.49, meaning that their average share price is 149% more volatile than the S&P 500.

Institutional and Insider Ownership

99.8% of Openlane shares are owned by institutional investors. Comparatively, 39.5% of shares of all “Commercial Services & Supplies” companies are owned by institutional investors. 2.2% of Openlane shares are owned by insiders. Comparatively, 16.9% of shares of all “Commercial Services & Supplies” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Openlane beats its peers on 8 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.