Critical Analysis: Oaktree Capital Group (OAK) & Its Competitors
Oaktree Capital Group (NYSE: OAK) is one of 53 public companies in the “Investment Management & Fund Operators” industry, but how does it contrast to its competitors? We will compare Oaktree Capital Group to related businesses based on the strength of its risk, dividends, earnings, profitability, institutional ownership, valuation and analyst recommendations.
Earnings and Valuation
This table compares Oaktree Capital Group and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Oaktree Capital Group||$1.51 billion||$497.59 million||9.92|
|Oaktree Capital Group Competitors||$3.00 billion||$961.92 million||6.53|
Oaktree Capital Group’s competitors have higher revenue and earnings than Oaktree Capital Group. Oaktree Capital Group is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Volatility and Risk
Oaktree Capital Group has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, Oaktree Capital Group’s competitors have a beta of 1.23, meaning that their average stock price is 23% more volatile than the S&P 500.
Oaktree Capital Group pays an annual dividend of $5.24 per share and has a dividend yield of 11.6%. Oaktree Capital Group pays out 114.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Investment Management & Fund Operators” companies pay a dividend yield of 2.8% and pay out 49.4% of their earnings in the form of a dividend.
Institutional & Insider Ownership
22.5% of Oaktree Capital Group shares are owned by institutional investors. Comparatively, 62.1% of shares of all “Investment Management & Fund Operators” companies are owned by institutional investors. 10.4% of shares of all “Investment Management & Fund Operators” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Oaktree Capital Group and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Oaktree Capital Group||19.17%||20.11%||4.95%|
|Oaktree Capital Group Competitors||-46.89%||10.47%||5.75%|
This is a breakdown of current recommendations and price targets for Oaktree Capital Group and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Oaktree Capital Group||1||5||2||0||2.13|
|Oaktree Capital Group Competitors||357||1778||1793||62||2.39|
Oaktree Capital Group presently has a consensus price target of $47.20, suggesting a potential upside of 4.08%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 6.58%. Given Oaktree Capital Group’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Oaktree Capital Group has less favorable growth aspects than its competitors.
Oaktree Capital Group competitors beat Oaktree Capital Group on 11 of the 15 factors compared.
Oaktree Capital Group Company Profile
Oaktree Capital Group, LLC (Oaktree) is an investment manager specializing in alternative investments. The Company operates through investment management segment, which consists of the investment management services that the Company provides to its clients. The Company manages investments in a range of strategies within approximately six asset classes, which include corporate debt, convertible securities, distressed debt, control investing, real estate and listed equities. The Funds managed by Oaktree include commingled funds, separate accounts and collateralized loan obligation vehicles (CLOs). The commingled funds include open-end and closed-end limited partnerships in which it makes an investment and for which it serves as the general partner. CLOs are structured finance vehicles in which the Company typically makes an investment and for which it serves as collateral manager. Its clientele includes the United States pension plans and corporations and/or their pension funds.
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