Critical Survey: KinderCare Learning Companies (KLC) versus Its Competitors

KinderCare Learning Companies (NYSE:KLC) is one of 36 public companies in the “SCHOOLS” industry, but how does it weigh in compared to its competitors? We will compare KinderCare Learning Companies to related businesses based on the strength of its valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Institutional and Insider Ownership

46.8% of shares of all “SCHOOLS” companies are held by institutional investors. 5.3% of KinderCare Learning Companies shares are held by insiders. Comparatively, 29.0% of shares of all “SCHOOLS” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares KinderCare Learning Companies and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
KinderCare Learning Companies	$2.73 billion	-$112.88 million	-3.59
KinderCare Learning Companies Competitors	$998.27 million	$62.93 million	15.63

KinderCare Learning Companies has higher revenue, but lower earnings than its competitors. KinderCare Learning Companies is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares KinderCare Learning Companies and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KinderCare Learning Companies	-4.13%	9.85%	2.28%
KinderCare Learning Companies Competitors	6.94%	4.90%	5.12%

Risk & Volatility

KinderCare Learning Companies has a beta of 2.33, suggesting that its stock price is 133% more volatile than the S&P 500. Comparatively, KinderCare Learning Companies’ competitors have a beta of 0.19, suggesting that their average stock price is 81% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for KinderCare Learning Companies and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KinderCare Learning Companies	3	5	1	0	1.78
KinderCare Learning Companies Competitors	383	770	1412	79	2.45

KinderCare Learning Companies currently has a consensus price target of $4.63, indicating a potential upside of 35.54%. As a group, “SCHOOLS” companies have a potential upside of 20.15%. Given KinderCare Learning Companies’ higher possible upside, equities research analysts plainly believe KinderCare Learning Companies is more favorable than its competitors.

Summary

KinderCare Learning Companies competitors beat KinderCare Learning Companies on 9 of the 13 factors compared.

KinderCare Learning Companies Company Profile

KinderCare Learning Companies Inc. is a provider of high-quality early childhood education by center capacity. KinderCare Learning Companies Inc. is based in PORTLAND, Ore.