KinderCare Learning Companies (KLC) vs. Its Rivals Financial Analysis

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

Risk and Volatility

KinderCare Learning Companies has a beta of 2.33, suggesting that its share price is 133% more volatile than the S&P 500. Comparatively, KinderCare Learning Companies’ rivals have a beta of 0.23, suggesting that their average share price is 77% less volatile than the S&P 500.

Earnings and Valuation

This table compares KinderCare Learning Companies and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
KinderCare Learning Companies	$2.73 billion	-$112.88 million	-3.04
KinderCare Learning Companies Competitors	$1.02 billion	$63.00 million	15.21

KinderCare Learning Companies has higher revenue, but lower earnings than its rivals. KinderCare Learning Companies 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.

Profitability

This table compares KinderCare Learning Companies and its rivals’ 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%

Analyst Recommendations

This is a breakdown of current ratings for KinderCare Learning Companies and its rivals, 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	378	766	1408	77	2.45

KinderCare Learning Companies currently has a consensus target price of $4.63, suggesting a potential upside of 60.44%. As a group, “SCHOOLS” companies have a potential upside of 22.87%. Given KinderCare Learning Companies’ higher probable upside, equities research analysts clearly believe KinderCare Learning Companies is more favorable than its rivals.

Insider and Institutional Ownership

46.8% of shares of all “SCHOOLS” companies are owned by institutional investors. 5.3% of KinderCare Learning Companies shares are owned by company insiders. Comparatively, 29.1% of shares of all “SCHOOLS” companies 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.

Summary

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

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.