Analyzing Oaktree Capital Group (OAK) and The Competition

Oaktree Capital Group (NYSE: OAK) is one of 53 publicly-traded companies in the “Investment Management & Fund Operators” industry, but how does it weigh in compared to its peers? We will compare Oaktree Capital Group to similar companies based on the strength of its valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Valuation and Earnings

This table compares Oaktree Capital Group and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Oaktree Capital Group $1.51 billion $497.59 million 9.88
Oaktree Capital Group Competitors $3.00 billion $962.04 million 6.49

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.

Institutional and Insider 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 insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Oaktree Capital Group and its peers, 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 1772 1791 62 2.39

Oaktree Capital Group currently has a consensus target price of $47.20, indicating a potential upside of 4.54%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 5.89%. Given Oaktree Capital Group’s peers stronger consensus rating and higher probable upside, analysts clearly believe Oaktree Capital Group has less favorable growth aspects than its peers.

Dividends

Oaktree Capital Group pays an annual dividend of $5.24 per share and has a dividend yield of 11.6%. 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 2.8% and pay out 49.4% of their earnings in the form of a dividend.

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 19.17% 20.11% 4.95%
Oaktree Capital Group Competitors -46.95% 10.51% 5.73%

Volatility and Risk

Oaktree Capital Group has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Oaktree Capital Group’s peers have a beta of 1.23, indicating that their average stock price is 23% more volatile than the S&P 500.

Summary

Oaktree Capital Group peers 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.

Receive News & Ratings for Oaktree Capital Group LLC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Oaktree Capital Group LLC and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply