Oaktree Capital Group (NYSE: OAK) is one of 55 publicly-traded companies in the “Investment Management & Fund Operators” industry, but how does it contrast to its peers? We will compare Oaktree Capital Group to related businesses based on the strength of its profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Volatility & Risk

Oaktree Capital Group has a beta of 0.59, meaning that its stock price is 41% 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.

Analyst Ratings

This is a summary of current ratings and price targets for Oaktree Capital Group and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oaktree Capital Group 0 5 1 0 2.17
Oaktree Capital Group Competitors 275 1636 1759 57 2.43

Oaktree Capital Group currently has a consensus target price of $49.50, suggesting a potential upside of 6.00%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 3.77%. Given Oaktree Capital Group’s higher probable upside, analysts plainly believe Oaktree Capital Group is more favorable than its peers.

Dividends

Oaktree Capital Group pays an annual dividend of $5.24 per share and has a dividend yield of 11.2%. 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 2.6% and pay out 49.3% of their earnings in the form of a dividend.

Institutional & Insider Ownership

21.8% 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. 10.5% of shares of all “Investment Management & Fund Operators” companies are owned by company 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.

Earnings and Valuation

This table compares Oaktree Capital Group and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Oaktree Capital Group $1.51 billion $497.59 million 10.22
Oaktree Capital Group Competitors $2.89 billion $931.92 million 7.35

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.

Profitability

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 46.60% 54.29% 14.24%
Oaktree Capital Group Competitors -44.90% 8.22% 5.18%

Summary

Oaktree Capital Group peers beat Oaktree Capital Group on 9 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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