Comparing UniFirst (NYSE:UNF) & Openlane (NYSE:OPLN)

UniFirst (NYSE:UNF) and Openlane (NYSE:OPLN) are both mid-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Profitability

This table compares UniFirst and Openlane’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UniFirst	4.34%	6.65%	5.19%
Openlane	9.23%	12.74%	3.62%

Insider and Institutional Ownership

78.2% of UniFirst shares are owned by institutional investors. Comparatively, 99.8% of Openlane shares are owned by institutional investors. 0.9% of UniFirst shares are owned by company insiders. Comparatively, 2.2% of Openlane shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares UniFirst and Openlane”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UniFirst	$2.52 billion	1.73	$109.49 million	$6.01	40.17
Openlane	$2.14 billion	1.97	$177.70 million	($0.74)	-46.94

Openlane has lower revenue, but higher earnings than UniFirst. Openlane is trading at a lower price-to-earnings ratio than UniFirst, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for UniFirst and Openlane, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UniFirst	0	3	0	1	2.50
Openlane	0	3	4	0	2.57

UniFirst currently has a consensus target price of $246.67, suggesting a potential upside of 2.17%. Openlane has a consensus target price of $43.83, suggesting a potential upside of 26.20%. Given Openlane’s stronger consensus rating and higher probable upside, analysts clearly believe Openlane is more favorable than UniFirst.

Volatility and Risk

UniFirst has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Openlane has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Summary

Openlane beats UniFirst on 10 of the 15 factors compared between the two stocks.

About UniFirst

UniFirst Corporation provides uniform rental and workplace services to businesses across a range of industries. Its programs include workwear selection, laundering, inspection, repair, and scheduled delivery, as well as sales of uniforms and related apparel. The company also supplies facility services such as floor mats, towels, restroom products, and first aid and safety supplies. Through specialized operations, UniFirst provides cleanroom garments and related services for businesses that require controlled environments.

About Openlane

OPENLANE operates a digital marketplace for wholesale used vehicles, connecting vehicle sellers—including dealers, fleet operators, financial institutions and manufacturers—with professional buyers. Its online auction platform supports the buying and selling of vehicles across multiple channels. The company also provides services that support wholesale transactions, such as vehicle condition information, title processing and transportation coordination. OPENLANE serves customers in the United States, Canada and Europe.