Openlane (OPLN) and Its Rivals Critical Analysis

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

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

Volatility and Risk

Openlane has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, Openlane’s peers have a beta of 2.44, meaning that their average stock price is 144% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Openlane	0	2	4	1	2.86
Openlane Competitors	1810	6083	8960	654	2.48

Openlane currently has a consensus target price of $43.33, indicating a potential upside of 11.49%. As a group, “Commercial Services & Supplies” companies have a potential upside of 10.56%. Given Openlane’s stronger consensus rating and higher probable 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	9.47%	13.00%	3.64%
Openlane Competitors	-60.96%	-122.75%	-1.36%

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Openlane	$1.93 billion	$177.70 million	-38.10
Openlane Competitors	$2.44 billion	$139.27 million	25.41

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.

Summary

Openlane beats its peers 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.