Analyzing Openlane (NYSE:OPLN) & Element Fleet Management (OTCMKTS:ELEEF)
by Danessa Lincoln · The Markets DailyElement Fleet Management (OTCMKTS:ELEEF – Get Free Report) and Openlane (NYSE:OPLN – Get Free Report) are both mid-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Insider & Institutional Ownership
99.8% of Openlane shares are held by institutional investors. 2.2% of Openlane shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Element Fleet Management and Openlane’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Element Fleet Management | 23.33% | 24.75% | 3.91% |
| Openlane | 9.67% | 12.81% | 3.62% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Element Fleet Management and Openlane, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Element Fleet Management | 0 | 0 | 3 | 1 | 3.25 |
| Openlane | 0 | 3 | 4 | 0 | 2.57 |
Openlane has a consensus target price of $43.83, suggesting a potential upside of 16.26%. Given Openlane’s higher probable upside, analysts plainly believe Openlane is more favorable than Element Fleet Management.
Earnings and Valuation
This table compares Element Fleet Management and Openlane”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Element Fleet Management | $1.19 billion | 5.05 | $279.13 million | $0.74 | 20.68 |
| Openlane | $1.93 billion | 2.39 | $177.70 million | ($0.85) | -44.36 |
Element Fleet Management has higher earnings, but lower revenue than Openlane. Openlane is trading at a lower price-to-earnings ratio than Element Fleet Management, indicating that it is currently the more affordable of the two stocks.
Summary
Element Fleet Management beats Openlane on 9 of the 14 factors compared between the two stocks.
About Element Fleet Management
Element Fleet Management Corp. operates as a fleet management company primarily in Canada, Mexico, Australia, and New Zealand. The company offers end-to-end fleet cars, trucks, and material handling support equipment acquisition; and end-to-end electric vehicle fleet including fleet planning, charging infrastructure solutions, acquisition, financing, maintenance, and remarketing. It provides commercial fleet financing comprising operating and capital lease, sale and leaseback funding, loans, rental fleet financing, client owned acquisition program, and fair market value lease for fleet cars, trucks, and equipment; and vehicle licensing and registration services, such as renewal, fleet title management, and insurance card management services. In addition, the company provides collision management services, such as 24/7 driver assistance, collision evaluation, repair management, and subrogation; fleet management outsourcing solutions; fuel, maintenance, and safety solutions; telematics and fleet connectivity solutions; and toll and violation management, as well as fleet remarketing, sale leaseback, and strategic fleet management consulting services. It serves construction, energy, oil and gas, food and beverages, healthcare, services, and transport sectors. Element Fleet Management Corp. was incorporated in 2007 and is based in Toronto, Canada.
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.