KinderCare Learning Companies (KLC) versus Its Peers Critical Review

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

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
KinderCare Learning Companies	$2.73 billion	-$112.88 million	-3.04
KinderCare Learning Companies Competitors	$998.27 million	$62.93 million	15.19

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

Analyst Ratings

This is a breakdown of current ratings and target prices for KinderCare Learning Companies and its peers, as provided 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	379	766	1408	78	2.45

KinderCare Learning Companies presently has a consensus target price of $4.63, indicating a potential upside of 60.44%. As a group, “SCHOOLS” companies have a potential upside of 23.67%. Given KinderCare Learning Companies’ higher probable upside, analysts plainly believe KinderCare Learning Companies is more favorable than its peers.

Volatility and Risk

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

Profitability

This table compares KinderCare Learning Companies and its peers’ 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%

Institutional & Insider Ownership

45.1% of shares of all “SCHOOLS” companies are held by institutional investors. 5.3% of KinderCare Learning Companies shares are held by company insiders. Comparatively, 30.1% of shares of all “SCHOOLS” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

KinderCare Learning Companies peers 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.