Financial Review: KinderCare Learning Companies (NYSE:KLC) versus Grand Canyon Education (NASDAQ:LOPE)

KinderCare Learning Companies (NYSE:KLC – Get Free Report) and Grand Canyon Education (NASDAQ:LOPE – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Profitability

This table compares KinderCare Learning Companies and Grand Canyon Education’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KinderCare Learning Companies -17.23% 6.65% 1.21%
Grand Canyon Education 19.63% 36.62% 26.87%

Earnings & Valuation

This table compares KinderCare Learning Companies and Grand Canyon Education”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KinderCare Learning Companies $2.73 billion 0.07 -$112.88 million ($3.98) -0.42
Grand Canyon Education $1.11 billion 3.82 $216.17 million $8.27 19.60

Grand Canyon Education has lower revenue, but higher earnings than KinderCare Learning Companies. KinderCare Learning Companies is trading at a lower price-to-earnings ratio than Grand Canyon Education, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for KinderCare Learning Companies and Grand Canyon Education, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KinderCare Learning Companies 5 5 1 0 1.64
Grand Canyon Education 0 1 3 0 2.75

KinderCare Learning Companies presently has a consensus price target of $3.77, indicating a potential upside of 123.82%. Grand Canyon Education has a consensus price target of $160.67, indicating a potential downside of 0.89%. Given KinderCare Learning Companies’ higher probable upside, equities analysts clearly believe KinderCare Learning Companies is more favorable than Grand Canyon Education.

Insider & Institutional Ownership

94.2% of Grand Canyon Education shares are held by institutional investors. 5.8% of KinderCare Learning Companies shares are held by insiders. Comparatively, 2.1% of Grand Canyon Education shares 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.

Risk & Volatility

KinderCare Learning Companies has a beta of 3.86, meaning that its stock price is 286% more volatile than the S&P 500. Comparatively, Grand Canyon Education has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Summary

Grand Canyon Education beats KinderCare Learning Companies on 10 of the 14 factors compared between the two stocks.

About KinderCare Learning Companies

(Get Free Report)

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.

About Grand Canyon Education

(Get Free Report)

Grand Canyon Education, Inc. provides education services to colleges and universities in the United States. It offers technology services, including learning management system, internal administration, infrastructure, and support services; academic services, such as program and curriculum, faculty and related training and development, class scheduling, and skills and simulation lab sites; and counseling services and support services comprising admission, financial aid, and field experience and other counseling services. The company also offers marketing and communication services that include lead acquisition, digital communications strategy, brand identity, media planning and strategy, video, business intelligence and data science, and market research services; and back-office services consisting of finance and accounting, human resources, audit, and procurement services. In addition, it provides education services to 25 university partners. Grand Canyon Education, Inc. was founded in 1949 and is headquartered in Phoenix, Arizona.

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