Financial Analysis: KinderCare Learning Companies (KLC) & Its Peers

KinderCare Learning Companies (NYSE:KLC) is one of 36 publicly-traded 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 institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Analyst Ratings

This is a breakdown of current ratings for KinderCare Learning Companies and its peers, as reported 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	381	769	1411	79	2.45

KinderCare Learning Companies presently has a consensus price target of $4.63, suggesting a potential upside of 38.66%. As a group, “SCHOOLS” companies have a potential upside of 20.00%. Given KinderCare Learning Companies’ higher possible upside, equities research 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	6.94%	4.90%	5.12%

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
KinderCare Learning Companies	$2.73 billion	-$112.88 million	-3.51
KinderCare Learning Companies Competitors	$1.02 billion	$62.93 million	15.55

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.

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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & 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 0.20, indicating that their average share price is 80% less volatile than the S&P 500.

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.