KAR Auction Services (NYSE: KAR) is one of 191 publicly-traded companies in the “NONFOOD RETAIL/WH” industry, but how does it compare to its rivals? We will compare KAR Auction Services to related companies based on the strength of its analyst recommendations, risk, earnings, valuation, profitability, institutional ownership and dividends.
Valuation & Earnings
This table compares KAR Auction Services and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|KAR Auction Services||$3.46 billion||$362.00 million||20.19|
|KAR Auction Services Competitors||$8.90 billion||$395.71 million||-625.94|
KAR Auction Services’ rivals have higher revenue and earnings than KAR Auction Services. KAR Auction Services is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
This is a breakdown of current ratings and price targets for KAR Auction Services and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|KAR Auction Services||0||1||7||0||2.88|
|KAR Auction Services Competitors||2108||11427||15201||588||2.49|
KAR Auction Services presently has a consensus price target of $58.63, suggesting a potential upside of 9.97%. As a group, “NONFOOD RETAIL/WH” companies have a potential upside of 7.93%. Given KAR Auction Services’ stronger consensus rating and higher possible upside, equities research analysts plainly believe KAR Auction Services is more favorable than its rivals.
KAR Auction Services pays an annual dividend of $1.40 per share and has a dividend yield of 2.6%. KAR Auction Services pays out 53.0% of its earnings in the form of a dividend. As a group, “NONFOOD RETAIL/WH” companies pay a dividend yield of 1.9% and pay out 34.8% of their earnings in the form of a dividend. KAR Auction Services has increased its dividend for 5 consecutive years.
Volatility & Risk
KAR Auction Services has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, KAR Auction Services’ rivals have a beta of 1.17, indicating that their average stock price is 17% more volatile than the S&P 500.
Institutional & Insider Ownership
98.9% of KAR Auction Services shares are held by institutional investors. Comparatively, 67.7% of shares of all “NONFOOD RETAIL/WH” companies are held by institutional investors. 1.3% of KAR Auction Services shares are held by company insiders. Comparatively, 16.9% of shares of all “NONFOOD RETAIL/WH” companies are held 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.
This table compares KAR Auction Services and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|KAR Auction Services||10.47%||23.61%||4.99%|
|KAR Auction Services Competitors||-0.22%||-207.99%||3.82%|
KAR Auction Services beats its rivals on 9 of the 15 factors compared.
KAR Auction Services Company Profile
KAR Auction Services, Inc. is a provider of whole car auction services in North America, and salvage auction services in North America and the United Kingdom. The Company operates through three segments: ADESA, Inc. (ADESA Auctions or ADESA), Insurance Auto Auctions, Inc. (IAA) and Automotive Finance Corporation (AFC). The ADESA segment is a provider of whole car auctions and related services to the vehicle remarketing industry in North America. It serves its customer base through online auctions and auction facilities that are developed and located to draw professional sellers and buyers together, and allow the buyers to inspect and compare vehicles remotely or in person. As a provider of salvage vehicle auctions and related services, it operates as IAA in the United States and Impact Auto Auctions in Canada, and serves customer base through salvage auction locations throughout North America. The AFC segment provides floorplan financing to independent used vehicle dealers.
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