Contrasting KinderCare Learning Companies (NYSE:KLC) and Four Seasons Education (Cayman) (NYSE:FEDU)

KinderCare Learning Companies (NYSE:KLC) and Four Seasons Education (Cayman) (NYSE:FEDU) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Insider and Institutional Ownership

4.3% of Four Seasons Education (Cayman) shares are owned by institutional investors. 5.3% of KinderCare Learning Companies shares are owned by company insiders. Comparatively, 45.8% of Four Seasons Education (Cayman) shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for KinderCare Learning Companies and Four Seasons Education (Cayman), as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KinderCare Learning Companies	3	5	1	0	1.78
Four Seasons Education (Cayman)	1	0	0	0	1.00

KinderCare Learning Companies presently has a consensus target price of $4.63, indicating a potential upside of 55.32%. Given KinderCare Learning Companies’ stronger consensus rating and higher possible upside, analysts clearly believe KinderCare Learning Companies is more favorable than Four Seasons Education (Cayman).

Risk & Volatility

KinderCare Learning Companies has a beta of 2.33, meaning that its share price is 133% more volatile than the S&P 500. Comparatively, Four Seasons Education (Cayman) has a beta of -0.06, meaning that its share price is 106% less volatile than the S&P 500.

Valuation and Earnings

This table compares KinderCare Learning Companies and Four Seasons Education (Cayman)”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KinderCare Learning Companies	$2.73 billion	0.13	-$112.88 million	($0.95)	-3.14
Four Seasons Education (Cayman)	$34.48 million	0.69	$110,000.00	N/A	N/A

Four Seasons Education (Cayman) has lower revenue, but higher earnings than KinderCare Learning Companies.

Profitability

This table compares KinderCare Learning Companies and Four Seasons Education (Cayman)’s 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%
Four Seasons Education (Cayman)	N/A	N/A	N/A

Summary

KinderCare Learning Companies beats Four Seasons Education (Cayman) on 7 of the 12 factors compared between the two stocks.

About KinderCare Learning Companies

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.

About Four Seasons Education (Cayman)

Four Seasons Education (Cayman) Inc. provides after-school education services for kindergarten, elementary, and middle school students in the People’s Republic of China and internationally. It also offers consulting services; and tourism services, including travel agency services. The company was founded in 2007 and is headquartered in Shanghai, the People’s Republic of China.