Oppenheimer (OPY) & Its Rivals Critical Review

Oppenheimer (NYSE:OPY) is one of 1,744 public companies in the “Capital Markets” industry, but how does it weigh in compared to its rivals? We will compare Oppenheimer to related companies based on the strength of its profitability, valuation, earnings, analyst recommendations, dividends, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings for Oppenheimer and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oppenheimer	0	0	3	0	3.00
Oppenheimer Competitors	5560	20137	22477	642	2.37

As a group, “Capital Markets” companies have a potential upside of 26.42%. Given Oppenheimer’s rivals higher probable upside, analysts plainly believe Oppenheimer has less favorable growth aspects than its rivals.

Profitability

This table compares Oppenheimer and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oppenheimer	4.94%	19.02%	4.75%
Oppenheimer Competitors	318.50%	79.22%	3.72%

Insider & Institutional Ownership

32.3% of Oppenheimer shares are held by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are held by institutional investors. 34.9% of Oppenheimer shares are held by company insiders. Comparatively, 13.1% of shares of all “Capital Markets” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Oppenheimer pays an annual dividend of $0.80 per share and has a dividend yield of 0.9%. Oppenheimer pays out 10.8% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 29.1% of their earnings in the form of a dividend. Oppenheimer has increased its dividend for 1 consecutive years.

Valuation & Earnings

This table compares Oppenheimer and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Oppenheimer	$1.64 billion	$148.40 million	12.21
Oppenheimer Competitors	$2.39 billion	$398.52 million	17.85

Oppenheimer’s rivals have higher revenue and earnings than Oppenheimer. Oppenheimer is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Oppenheimer has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, Oppenheimer’s rivals have a beta of 0.79, meaning that their average stock price is 21% less volatile than the S&P 500.

Summary

Oppenheimer rivals beat Oppenheimer on 8 of the 15 factors compared.

Oppenheimer Company Profile

Oppenheimer Holdings Inc. operates as a middle-market investment bank and full-service broker-dealer in the Americas, Europe, the Middle East, and Asia. The company provides brokerage services covering corporate equity and debt securities, money market instruments, exchange-traded options and futures contracts, municipal bonds, mutual funds, exchange-traded funds, and unit investment trusts; financial and wealth planning services; and margin lending services. It offers asset management services, including separately managed accounts, mutual fund managed accounts, discretionary portfolio management programs, non-discretionary investment advisory and consultation services, alternative investments, portfolio enhancement programs, and institutional taxable fixed income portfolio management strategies and solutions, as well as taxable and non-taxable fixed income portfolios and strategies. In addition, the company offers investment banking services, such as strategic advisory services and capital markets products; merger and acquisition, equities capital market, debt capital market, debt advisory and restructuring, and fund placement services; and institutional equity sales and trading, equity research, equity derivatives and index options, convertible bonds, event driven sales and trading, and portfolio and electronic trading. Further, it provides institutional fixed income sales and trading, fixed income research, public finance, and municipal trading services; and proprietary trading and investment activities. Additionally, the company offers underwriting, market-making, trust, and discount services, as well as a cloud-based financial market. It serves high-net-worth individuals and families, corporate executives, public and private businesses, institutions and corporations, governments, financial sponsors, and domestic and international investors. Oppenheimer Holdings Inc. was founded in 1881 and is headquartered in New York, New York.