Oaktree Capital Group (OAK) and its Competitors Financial Analysis
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 rivals? We will compare Oaktree Capital Group to similar companies based off the strength of its institutional ownership, profitability, analyst recommendations, valuation, earnings, dividends and risk.
Volatility and Risk
Oaktree Capital Group has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Oaktree Capital Group’s rivals have a beta of 1.23, suggesting that their average stock price is 23% more volatile than the S&P 500.
Insider & Institutional 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, endowments and large money managers believe a company is poised for long-term growth.
Oaktree Capital Group pays an annual dividend of $5.24 per share and has a dividend yield of 11.7%. 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 2.9% and pay out 49.4% of their earnings in the form of a dividend.
This is a breakdown of current ratings and price targets for Oaktree Capital Group and its rivals, as provided 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||1771||1789||62||2.39|
Oaktree Capital Group currently has a consensus price target of $47.20, suggesting a potential upside of 5.24%. All “Investment Management & Fund Operators” companies have a potential upside of 6.44%. Given Oaktree Capital Group’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Oaktree Capital Group has less favorable growth aspects than its rivals.
Earnings and Valuation
This table compares Oaktree Capital Group and its rivals top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Oaktree Capital Group||$1.51 billion||$497.59 million||9.81|
|Oaktree Capital Group Competitors||$3.00 billion||$962.04 million||6.21|
Oaktree Capital Group’s rivals have higher revenue and earnings than Oaktree Capital Group. Oaktree Capital Group is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently the more expensive than other companies in its industry.
This table compares Oaktree Capital Group and its rivals’ 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||-45.68%||10.48%||5.75%|
Oaktree Capital Group rivals beat Oaktree Capital Group on 11 of the 15 factors compared.
About Oaktree Capital Group
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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