Franklin Covey (FC) vs. Its Rivals Critical Analysis

Franklin Covey (NYSE:FC) is one of 20 publicly-traded companies in the “Consulting” industry, but how does it contrast to its peers? We will compare Franklin Covey to similar companies based on the strength of its institutional ownership, risk, profitability, dividends, analyst recommendations, valuation and earnings.

Valuation and Earnings

This table compares Franklin Covey and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Franklin Covey	$287.23 million	$23.40 million	16.99
Franklin Covey Competitors	$2.97 billion	$272.15 million	22.12

Franklin Covey’s peers have higher revenue and earnings than Franklin Covey. Franklin Covey 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.

Risk and Volatility

Franklin Covey has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Franklin Covey’s peers have a beta of 0.72, suggesting that their average stock price is 28% less volatile than the S&P 500.

Institutional and Insider Ownership

69.9% of Franklin Covey shares are owned by institutional investors. Comparatively, 85.1% of shares of all “Consulting” companies are owned by institutional investors. 15.5% of Franklin Covey shares are owned by insiders. Comparatively, 5.2% of shares of all “Consulting” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Franklin Covey and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Franklin Covey	6.21%	22.58%	7.38%
Franklin Covey Competitors	7.97%	28.35%	8.87%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Franklin Covey and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Covey	0	0	2	0	3.00
Franklin Covey Competitors	69	675	1250	59	2.63

Franklin Covey presently has a consensus target price of $42.50, suggesting a potential upside of 88.05%. As a group, “Consulting” companies have a potential upside of 25.69%. Given Franklin Covey’s stronger consensus rating and higher possible upside, research analysts clearly believe Franklin Covey is more favorable than its peers.

Summary

Franklin Covey peers beat Franklin Covey on 8 of the 13 factors compared.

Franklin Covey Company Profile

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.