Open Lending (LPRO) versus Its Rivals Financial Analysis

Open Lending (NASDAQ: LPRO) is one of 16 public companies in the “Personal credit institutions” industry, but how does it weigh in compared to its peers? We will compare Open Lending to similar businesses based on the strength of its analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Profitability

This table compares Open Lending and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Open Lending -68.56% -50.19% 16.54%
Open Lending Competitors 15.91% 26.68% 2.55%

Volatility & Risk

Open Lending has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, Open Lending’s peers have a beta of 1.38, suggesting that their average share price is 38% more volatile than the S&P 500.

Insider and Institutional Ownership

81.9% of Open Lending shares are owned by institutional investors. Comparatively, 60.5% of shares of all “Personal credit institutions” companies are owned by institutional investors. 26.0% of Open Lending shares are owned by company insiders. Comparatively, 18.8% of shares of all “Personal credit institutions” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Open Lending and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Open Lending $108.89 million -$97.56 million 76.66
Open Lending Competitors $2.41 billion $325.50 million 16.86

Open Lending’s peers have higher revenue and earnings than Open Lending. Open Lending is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings for Open Lending and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Open Lending 0 2 10 1 2.92
Open Lending Competitors 191 843 1062 62 2.46

Open Lending presently has a consensus price target of $41.33, indicating a potential upside of 7.84%. As a group, “Personal credit institutions” companies have a potential downside of 19.64%. Given Open Lending’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Open Lending is more favorable than its peers.

Summary

Open Lending beats its peers on 7 of the 13 factors compared.

About Open Lending

Open Lending Corporation provides lending enablement and risk analytics solutions to credit unions, regional banks, and captive finance companies of original equipment manufacturers in the United States. It offers Lenders Protection Program (LPP), which is a Software as a Service platform that facilitates loan decision making and automated underwriting by third-party lenders and the issuance of credit default insurance through third-party insurance providers. The company's LPP products include loan analytics, risk-based loan pricing, risk modeling, and automated decision technology for automotive lenders. Open Lending Corporation was founded in 2000 and is based in Austin, Texas.

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