Contrasting Openlane (OPLN) and The Competition

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

Insider and Institutional Ownership

99.8% of Openlane shares are owned by institutional investors. Comparatively, 39.6% 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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Openlane and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Openlane	0	2	4	1	2.86
Openlane Competitors	1852	6128	9016	660	2.48

Openlane currently has a consensus target price of $43.83, suggesting a potential upside of 23.47%. As a group, “Commercial Services & Supplies” companies have a potential upside of 11.27%. Given Openlane’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Openlane is more favorable than its rivals.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Openlane	$1.93 billion	$177.70 million	-41.76
Openlane Competitors	$2.43 billion	$139.00 million	15.03

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

Profitability

This table compares Openlane and its rivals’ 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	-59.03%	-118.76%	-1.30%

Risk and Volatility

Openlane has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Openlane’s rivals have a beta of 2.41, suggesting that their average share price is 141% more volatile than the S&P 500.

Summary

Openlane beats its rivals 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.