Critical Survey: Franklin Covey (FC) and Its Competitors

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

Valuation and Earnings

This table compares Franklin Covey and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Franklin Covey	$287.23 million	$23.40 million	17.02
Franklin Covey Competitors	$2.97 billion	$272.15 million	21.79

Franklin Covey’s competitors have higher revenue and earnings than Franklin Covey. Franklin Covey 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 Franklin Covey and its competitors’ 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%	28.35%	8.87%

Analyst Recommendations

This is a breakdown of recent ratings for Franklin Covey and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Covey	0	0	2	0	3.00
Franklin Covey Competitors	69	676	1250	59	2.63

Franklin Covey presently has a consensus price target of $42.50, indicating a potential upside of 87.80%. As a group, “Consulting” companies have a potential upside of 24.30%. Given Franklin Covey’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Franklin Covey is more favorable than its competitors.

Insider & Institutional Ownership

69.9% of Franklin Covey shares are held by institutional investors. Comparatively, 85.1% of shares of all “Consulting” companies are held by institutional investors. 15.5% of Franklin Covey shares are held by company insiders. Comparatively, 5.6% of shares of all “Consulting” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

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

Summary

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

Franklin Covey Company Profile

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.