Critical Analysis: Openlane (OPLN) versus Its Rivals

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Openlane and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Openlane	0	2	4	1	2.86
Openlane Competitors	1839	6117	9005	657	2.48

Openlane currently has a consensus target price of $43.83, indicating a potential upside of 27.46%. As a group, “Commercial Services & Supplies” companies have a potential upside of 10.60%. Given Openlane’s stronger consensus rating and higher probable upside, analysts plainly believe Openlane is more favorable than its competitors.

Volatility and Risk

Openlane has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Openlane’s competitors have a beta of 2.45, indicating that their average share price is 145% more volatile than the S&P 500.

Valuation & Earnings

This table compares Openlane and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Openlane	$1.93 billion	$177.70 million	-40.46
Openlane Competitors	$2.41 billion	$139.29 million	16.73

Openlane’s competitors have higher revenue, but lower earnings than Openlane. Openlane is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional 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 insiders. Comparatively, 16.7% of shares of all “Commercial Services & Supplies” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Openlane and its competitors’ 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	-58.22%	-118.46%	-1.28%

Summary

Openlane beats its competitors on 9 of the 13 factors compared.

About Openlane

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.