Analyzing Franklin Covey (FC) and Its Peers

Franklin Covey (NYSE:FC) is one of 20 public companies in the “Consulting” industry, but how does it compare to its peers? We will compare Franklin Covey to similar companies based on the strength of its earnings, profitability, dividends, risk, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of recent recommendations for Franklin Covey and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Covey	0	0	2	0	3.00
Franklin Covey Competitors	69	672	1245	59	2.63

Franklin Covey currently has a consensus price target of $42.50, indicating a potential upside of 85.86%. As a group, “Consulting” companies have a potential upside of 24.80%. Given Franklin Covey’s stronger consensus rating and higher possible upside, analysts clearly believe Franklin Covey is more favorable than its peers.

Risk & Volatility

Franklin Covey has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Franklin Covey’s peers have a beta of 0.72, indicating that their average stock price is 28% less volatile than the S&P 500.

Insider & Institutional Ownership

69.9% of Franklin Covey shares are owned by institutional investors. Comparatively, 85.1% of shares of all “Consulting” companies are owned by institutional investors. 15.5% of Franklin Covey shares are owned by insiders. Comparatively, 5.2% of shares of all “Consulting” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Franklin Covey and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Franklin Covey	6.21%	22.58%	7.38%
Franklin Covey Competitors	7.97%	28.36%	8.87%

Earnings and Valuation

This table compares Franklin Covey and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Franklin Covey	$287.23 million	$23.40 million	17.19
Franklin Covey Competitors	$3.11 billion	$272.15 million	22.36

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

Summary

Franklin Covey peers beat Franklin Covey on 8 of the 13 factors compared.

About Franklin Covey

Franklin Covey Co. provides training and consulting services in the areas of execution, sales performance, productivity, customer loyalty, and educational improvement for organizations and individuals worldwide. The company operates through Direct Offices, International Licensees, and Education Practice segments. It also provides a suite of individual-effectiveness and leadership-development training and products. In addition, the company operates Strive platform, a learning deployment platform; Impact platform that helps automate implementation of learning initiatives; All Access Pass, a subscription platform that enables improved deployment of content, services, technology, and metrics to deliver behavioral impact at scale; and Leader in Me, which provides access to digital versions of student leadership guides, leadership lessons, illustrated leadership stories, and other resources. Franklin Covey Co. was incorporated in 1983 and is headquartered in Salt Lake City, Utah.