OPENLANE (NYSE:KAR) & Valeo (OTCMKTS:VLEEY) Head to Head Review

OPENLANE (NYSE:KAR) and Valeo (OTCMKTS:VLEEY) are both mid-cap auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.

Risk & Volatility

OPENLANE has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Valeo has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for OPENLANE and Valeo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OPENLANE	0	2	4	1	2.86
Valeo	0	6	1	1	2.38

OPENLANE presently has a consensus price target of $30.20, indicating a potential downside of 2.20%. Given OPENLANE’s stronger consensus rating and higher possible upside, equities research analysts clearly believe OPENLANE is more favorable than Valeo.

Earnings and Valuation

This table compares OPENLANE and Valeo”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OPENLANE	$1.79 billion	1.83	$109.90 million	$0.87	35.49
Valeo	$23.26 billion	0.15	$175.30 million	N/A	N/A

Valeo has higher revenue and earnings than OPENLANE.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OPENLANE	9.00%	12.42%	3.65%
Valeo	N/A	N/A	N/A

Institutional and Insider Ownership

99.8% of OPENLANE shares are held by institutional investors. Comparatively, 0.0% of Valeo shares are held by institutional investors. 1.5% of OPENLANE shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

OPENLANE beats Valeo on 10 of the 12 factors compared between the two stocks.

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.

About Valeo

Valeo SE designs, produces, and sells products and systems for automakers in France, other European countries, Africa, North America, South America, and Asia. The company operates through four segments: Comfort & Driving Assistance Systems, Powertrain Systems, Thermal Systems, and Visibility Systems. It offers parking and driving assistance products, such as ultrasonic sensors, radars, and cameras to detect obstacles around vehicles; intuitive control products; and a range of connectivity solutions from short-range to long-range connectivity, as well as develops systems that enable the integration of applications, such as car sharing services and remote parking systems. The company also provides powertrain systems, including electric powertrain systems for electric cars; torque converters, dual dry and wet clutches, dual mass flywheels, and actuators that enable the automation of transmissions to reduce fuel consumption and enhance driving comfort; and clean engines for vehicles. In addition, it designs and manufactures systems, modules, and components to optimize thermal energy management of vehicles and passenger comfort in the cabin. Further, the company designs and produces lighting and wiper systems for drivers in various weather conditions. Additionally, it offers original equipment spares to auto manufacturers; and replacement parts and accessories to independent aftermarket for passenger cars and commercial vehicles, as well as products for heavy commercial vehicles. The company was incorporated in 1923 and is headquartered in Paris, France.