Comparing PHINIA (NYSE:PHIN) & OPENLANE (NYSE:KAR)

PHINIA (NYSE:PHIN) and OPENLANE (NYSE:KAR) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.

Insider and Institutional Ownership

90.9% of PHINIA shares are held by institutional investors. Comparatively, 99.8% of OPENLANE shares are held by institutional investors. 2.0% of PHINIA shares are held by insiders. Comparatively, 1.5% of OPENLANE shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

PHINIA pays an annual dividend of $1.08 per share and has a dividend yield of 2.2%. OPENLANE pays an annual dividend of $0.76 per share and has a dividend yield of 3.0%. PHINIA pays out 61.4% of its earnings in the form of a dividend. OPENLANE pays out 115.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PHINIA has increased its dividend for 2 consecutive years.

Profitability

This table compares PHINIA and OPENLANE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PHINIA	2.28%	9.88%	4.20%
OPENLANE	7.15%	10.38%	2.98%

Volatility & Risk

PHINIA has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500. Comparatively, OPENLANE has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for PHINIA and OPENLANE, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PHINIA	0	3	3	1	2.71
OPENLANE	0	2	2	0	2.50

PHINIA presently has a consensus target price of $51.17, indicating a potential upside of 5.72%. OPENLANE has a consensus target price of $24.00, indicating a potential downside of 5.85%. Given PHINIA’s stronger consensus rating and higher possible upside, equities research analysts plainly believe PHINIA is more favorable than OPENLANE.

Valuation and Earnings

This table compares PHINIA and OPENLANE”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PHINIA	$3.40 billion	0.57	$79.00 million	$1.76	27.50
OPENLANE	$1.82 billion	1.51	$109.90 million	$0.66	38.62

OPENLANE has lower revenue, but higher earnings than PHINIA. PHINIA is trading at a lower price-to-earnings ratio than OPENLANE, indicating that it is currently the more affordable of the two stocks.

Summary

PHINIA beats OPENLANE on 11 of the 18 factors compared between the two stocks.

About PHINIA

PHINIA Inc. engages in the development, design, and manufacture of integrated components and systems that optimize performance, increase efficiency, and reduce emissions in combustion and hybrid propulsion for commercial and light vehicles, and industrial applications. The company operates through Fuel Systems and Aftermarket segments. The Fuel Systems segment provides advanced fuel injection systems, including pumps, injectors, fuel rail assemblies, and engine control modules; fuel delivery modules; canisters; sensors; and electronic control modules. The segment also offers complete systems comprising associated software and calibration services, that reduce emissions and improve fuel economy for traditional and hybrid applications. The Aftermarket segment is involved in the sale of starters, alternators, and other new and remanufactured products, as well as maintenance, test equipment, and vehicle diagnostics solutions. It servs original equipment manufacturers of passenger cars, trucks, vans, sport-utility vehicles, medium-duty and heavy-duty trucks, and buses, as well as other off-highway construction, marine, and agricultural and industrial applications. PHINIA Inc. was incorporated in 2023 and is based in Auburn Hills, Michigan.

About OPENLANE

OPENLANE, Inc., together with its subsidiaries, operates as a digital marketplace for used vehicles, which connects sellers and buyers in North America, Europe, the Philippines, and Uruguay. The company operates through two segments, Marketplace and Finance. The Marketplace segment offers digital marketplace services for buying and selling used vehicles. Its digital marketplaces include OPENLANE, a mobile-app enabled solutions that allows dealers to sell and source inventory in the United States. This segment also provides value-added ancillary services, including inbound and outbound transportation logistics, reconditioning, vehicle inspection and certification, titling, administrative, and collateral recovery services. This segment sells its products and services through vehicle manufacturers, fleet companies, rental car companies, finance companies, and others. The Finance segment offers floorplan financing, a short-term inventory-secured financing to independent used vehicle dealers. The company serves commercial customers and dealer customers. The company was formerly known as KAR Auction Services, Inc. and changed its name to OPENLANE, Inc. in May 2023. OPENLANE, Inc. was incorporated in 2006 and is headquartered in Carmel, Indiana.