Oppenheimer (OPY) vs. Its Peers Head-To-Head Review

Oppenheimer (NYSE:OPY) is one of 1,743 publicly-traded companies in the “Capital Markets” industry, but how does it compare to its competitors? We will compare Oppenheimer to similar businesses based on the strength of its valuation, dividends, risk, analyst recommendations, earnings, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings for Oppenheimer and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oppenheimer	0	0	3	0	3.00
Oppenheimer Competitors	5561	20143	22484	642	2.37

As a group, “Capital Markets” companies have a potential upside of 25.17%. Given Oppenheimer’s competitors higher probable upside, analysts clearly believe Oppenheimer has less favorable growth aspects than its competitors.

Profitability

This table compares Oppenheimer and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oppenheimer	4.94%	19.02%	4.75%
Oppenheimer Competitors	318.28%	11.55%	3.69%

Dividends

Oppenheimer pays an annual dividend of $0.80 per share and has a dividend yield of 0.8%. Oppenheimer pays out 10.8% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 29.2% of their earnings in the form of a dividend. Oppenheimer has raised its dividend for 1 consecutive years.

Risk & Volatility

Oppenheimer has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, Oppenheimer’s competitors have a beta of 0.79, meaning that their average stock price is 21% less volatile than the S&P 500.

Institutional & Insider Ownership

32.3% of Oppenheimer shares are held by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are held by institutional investors. 34.9% of Oppenheimer shares are held by company insiders. Comparatively, 13.0% of shares of all “Capital Markets” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Oppenheimer and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Oppenheimer	$1.75 billion	$148.40 million	12.68
Oppenheimer Competitors	$2.48 billion	$398.65 million	16.95

Oppenheimer’s competitors have higher revenue and earnings than Oppenheimer. Oppenheimer 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.

Summary

Oppenheimer beats its competitors on 8 of the 15 factors compared.

About Oppenheimer

Oppenheimer Holdings Inc. operates as a middle-market investment bank and full-service broker-dealer in the Americas, Europe, the Middle East, and Asia. The company provides brokerage services covering corporate equity and debt securities, money market instruments, exchange-traded options and futures contracts, municipal bonds, mutual funds, exchange-traded funds, and unit investment trusts; financial and wealth planning services; and margin lending services. It offers asset management services, including separately managed accounts, mutual fund managed accounts, discretionary portfolio management programs, non-discretionary investment advisory and consultation services, alternative investments, portfolio enhancement programs, and institutional taxable fixed income portfolio management strategies and solutions, as well as taxable and non-taxable fixed income portfolios and strategies. In addition, the company offers investment banking services, such as strategic advisory services and capital markets products; merger and acquisition, equities capital market, debt capital market, debt advisory and restructuring, and fund placement services; and institutional equity sales and trading, equity research, equity derivatives and index options, convertible bonds, event driven sales and trading, and portfolio and electronic trading. Further, it provides institutional fixed income sales and trading, fixed income research, public finance, and municipal trading services; and proprietary trading and investment activities. Additionally, the company offers underwriting, market-making, trust, and discount services, as well as a cloud-based financial market. It serves high-net-worth individuals and families, corporate executives, public and private businesses, institutions and corporations, governments, financial sponsors, and domestic and international investors. Oppenheimer Holdings Inc. was founded in 1881 and is headquartered in New York, New York.