Franklin Covey (NYSE:FC – Get Free Report) and Skillsoft (NYSE:SKIL – Get Free Report) are both small-cap industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, risk, dividends, analyst recommendations and institutional ownership.
Volatility & Risk
Franklin Covey has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Skillsoft has a beta of 2.46, suggesting that its share price is 146% more volatile than the S&P 500.
Profitability
This table compares Franklin Covey and Skillsoft’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Franklin Covey | 0.83% | 17.37% | 4.04% |
| Skillsoft | -36.13% | -74.19% | 4.10% |
Insider & Institutional Ownership
69.9% of Franklin Covey shares are owned by institutional investors. Comparatively, 87.0% of Skillsoft shares are owned by institutional investors. 15.2% of Franklin Covey shares are owned by insiders. Comparatively, 16.2% of Skillsoft shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Franklin Covey and Skillsoft”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Franklin Covey | $267.07 million | 0.73 | $3.07 million | $0.17 | 102.21 |
| Skillsoft | $512.67 million | 0.08 | -$139.82 million | ($18.53) | -0.25 |
Franklin Covey has higher earnings, but lower revenue than Skillsoft. Skillsoft is trading at a lower price-to-earnings ratio than Franklin Covey, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations and price targets for Franklin Covey and Skillsoft, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Franklin Covey | 1 | 1 | 2 | 0 | 2.25 |
| Skillsoft | 1 | 2 | 0 | 0 | 1.67 |
Franklin Covey currently has a consensus price target of $27.50, indicating a potential upside of 58.26%. Given Franklin Covey’s stronger consensus rating and higher probable upside, equities analysts plainly believe Franklin Covey is more favorable than Skillsoft.
Summary
Franklin Covey beats Skillsoft on 9 of the 14 factors compared between the two stocks.
About Franklin Covey
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.
About Skillsoft
Skillsoft Corp. provides content and platform and instructor-led training services in the United States and internationally. The company's Content & Platform segment engages in the sale, marketing, and delivery of its content learning solutions in areas, such as leadership and business, technology and developer, and compliance comprising individualized coaching, as well as technical skill areas. This segment also offers Percipio, an AI-driven online learning platform that delivers a learning experience through SaaS solutions. Its Instructor-Led Training segment provides training solutions, including information technology and business skills for corporations and their employees by guiding its customers throughout their lifelong technology learning journey by offering relevant and up-to-date skills training through instructor-led and self-paced, vendor certified, and other proprietary offerings. The company markets and sells their offerings to businesses of many sizes, government agencies, educational institutions, and resellers. Skillsoft Corp. is headquartered in Greenwood Village, Colorado.
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