Financial Review: KinderCare Learning Companies (KLC) and The Competition

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

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 insiders. Comparatively, 29.8% of shares of all “SCHOOLS” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
KinderCare Learning Companies	$2.73 billion	-$112.88 million	-3.85
KinderCare Learning Companies Competitors	$1.02 billion	$77.32 million	14.16

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 recommendations and price targets for KinderCare Learning Companies and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KinderCare Learning Companies	3	5	1	0	1.78
KinderCare Learning Companies Competitors	384	773	1418	79	2.45

KinderCare Learning Companies currently has a consensus target price of $4.63, indicating a potential upside of 26.64%. As a group, “SCHOOLS” companies have a potential upside of 25.51%. Given KinderCare Learning Companies’ higher possible upside, analysts clearly believe KinderCare Learning Companies is more favorable than its peers.

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	7.34%	5.26%	5.34%

Risk and Volatility

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 0.19, indicating that their average share price is 81% less volatile than the S&P 500.

Summary

KinderCare Learning Companies peers 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.