Openlane (OPLN) and Its Competitors Critical Survey

Openlane (NYSE:OPLN) is one of 355 public companies in the “Commercial Services & Supplies” industry, but how does it contrast to its peers? We will compare Openlane to related businesses based on the strength of its institutional ownership, valuation, earnings, risk, profitability, dividends and analyst recommendations.

Earnings and Valuation

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	-41.31
Openlane Competitors	$2.43 billion	$139.57 million	16.43

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, 39.6% of shares of all “Commercial Services & Supplies” companies are held by institutional investors. 2.2% of Openlane shares are held by company insiders. Comparatively, 16.7% of shares of all “Commercial Services & Supplies” companies are held by company 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.

Analyst Ratings

This is a summary of current ratings 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	1846	6123	9009	659	2.48

Openlane currently has a consensus target price of $43.83, indicating a potential upside of 24.85%. As a group, “Commercial Services & Supplies” companies have a potential upside of 11.02%. Given Openlane’s stronger consensus rating and higher possible upside, equities analysts clearly believe Openlane is more favorable than its peers.

Risk and Volatility

Openlane has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, Openlane’s peers have a beta of 2.85, suggesting that their average share price is 185% more volatile than the S&P 500.

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	-58.21%	-118.69%	-1.30%

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.