Head to Head Comparison: Montrose Environmental Group (NYSE:ONT) and Openlane (NYSE:OPLN)

Openlane (NYSE:OPLN) and Montrose Environmental Group (NYSE:ONT) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Insider and Institutional Ownership

99.8% of Openlane shares are owned by institutional investors. Comparatively, 87.9% of Montrose Environmental Group shares are owned by institutional investors. 2.2% of Openlane shares are owned by insiders. Comparatively, 10.4% of Montrose Environmental Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Openlane and Montrose Environmental Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Openlane	9.67%	12.81%	3.62%
Montrose Environmental Group	-1.44%	4.11%	1.89%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Openlane and Montrose Environmental Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Openlane	0	3	4	0	2.57
Montrose Environmental Group	2	3	1	0	1.83

Openlane currently has a consensus target price of $43.83, suggesting a potential upside of 19.13%. Montrose Environmental Group has a consensus target price of $17.50, suggesting a potential upside of 26.45%. Given Montrose Environmental Group’s higher possible upside, analysts plainly believe Montrose Environmental Group is more favorable than Openlane.

Volatility and Risk

Openlane has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, Montrose Environmental Group has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500.

Valuation & Earnings

This table compares Openlane and Montrose Environmental Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Openlane	$1.93 billion	2.34	$177.70 million	($0.85)	-43.29
Montrose Environmental Group	$830.54 million	0.59	-$840,000.00	($0.33)	-41.94

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

Summary

Openlane beats Montrose Environmental Group on 9 of the 14 factors compared between the two stocks.

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.

About Montrose Environmental Group

Montrose Environmental Group, Inc. operates as an environmental services company in the United States, Canada, and internationally. The company operates in three segments: Assessment, Permitting and Response; Measurement and Analysis; and Remediation and Reuse. The Assessment, Permitting and Response segment provides scientific advisory and consulting services to support environmental assessments; environmental emergency response and recovery; toxicology consulting and environmental audits and permits for current operations; facility upgrades; new projects; decommissioning projects; and development projects. This segment also offers technical advisory and consulting services, including regulatory compliance support and planning, environmental, ecosystem and toxicological assessments, and support during responses to environmental disruptions. The Measurement and Analysis segment tests and analyzes air, water, and soil to determine concentrations of contaminants, as well as the toxicological impact of contaminants on flora, fauna, and human health. Its services include source and ambient air testing and monitoring, leak detection, and advanced analytical laboratory services, such as storm water, wastewater, and drinking water analysis. The Remediation and Reuse segment provides engineering, design, implementation, and operations and maintenance services primarily to treat contaminated water, remove contaminants from soil, or create biogas from waste. The company serves financial, oil and gas, utilities, construction, automotive, real-estate, midstream energy, manufacturing, commodities, petrochemical, food and beverage, telecommunications, and engineering industries, as well as local, state, provincial, and federal government entities. Montrose Environmental Group, Inc. was founded in 2012 and is headquartered in North Little Rock, Arkansas.