Analyzing Oaktree Capital Group (OAK) & Its Rivals
Oaktree Capital Group (NYSE: OAK) is one of 53 public companies in the “Investment Management & Fund Operators” industry, but how does it weigh in compared to its peers? We will compare Oaktree Capital Group to similar companies based on the strength of its earnings, institutional ownership, risk, valuation, dividends, analyst recommendations and profitability.
Oaktree Capital Group pays an annual dividend of $5.24 per share and has a dividend yield of 11.3%. 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 2.7% and pay out 49.4% of their earnings in the form of a dividend.
This table compares Oaktree Capital Group and its peers’ 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||-47.28%||7.36%||4.90%|
Insider & Institutional Ownership
21.8% of Oaktree Capital Group shares are held by institutional investors. Comparatively, 62.0% of shares of all “Investment Management & Fund Operators” companies are held by institutional investors. 10.4% of shares of all “Investment Management & Fund Operators” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Oaktree Capital Group and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Oaktree Capital Group||$1.51 billion||$497.59 million||10.19|
|Oaktree Capital Group Competitors||$3.00 billion||$962.53 million||6.77|
Oaktree Capital Group’s peers have higher revenue and earnings than Oaktree Capital Group. Oaktree Capital Group 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.
Volatility & 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 peers have a beta of 1.23, meaning that their average stock price is 23% more volatile than the S&P 500.
This is a breakdown of recent ratings for Oaktree Capital Group and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Oaktree Capital Group||1||5||1||0||2.00|
|Oaktree Capital Group Competitors||358||1781||1800||62||2.39|
Oaktree Capital Group currently has a consensus price target of $47.20, indicating a potential upside of 1.40%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 6.88%. Given Oaktree Capital Group’s peers stronger consensus rating and higher possible upside, analysts clearly believe Oaktree Capital Group has less favorable growth aspects than its peers.
Oaktree Capital Group peers beat Oaktree Capital Group on 10 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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