Critical Survey: KinderCare Learning Companies (KLC) versus Its Rivals

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

Profitability

This table compares KinderCare Learning Companies and its competitors’ 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%

Earnings and Valuation

This table compares KinderCare Learning Companies and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
KinderCare Learning Companies	$2.73 billion	-$112.88 million	-3.15
KinderCare Learning Companies Competitors	$998.27 million	$62.93 million	15.20

KinderCare Learning Companies has higher revenue, but lower earnings than its competitors. KinderCare Learning Companies is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

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’ competitors have a beta of 0.23, indicating that their average share price is 77% less volatile than the S&P 500.

Insider and Institutional Ownership

45.1% of shares of all “SCHOOLS” companies are owned by institutional investors. 5.3% of KinderCare Learning Companies shares are owned by insiders. Comparatively, 30.1% of shares of all “SCHOOLS” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for KinderCare Learning Companies and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KinderCare Learning Companies	3	5	1	0	1.78
KinderCare Learning Companies Competitors	379	768	1408	78	2.45

KinderCare Learning Companies presently has a consensus price target of $4.63, suggesting a potential upside of 54.80%. As a group, “SCHOOLS” companies have a potential upside of 23.34%. Given KinderCare Learning Companies’ higher probable upside, equities research analysts plainly believe KinderCare Learning Companies is more favorable than its competitors.

Summary

KinderCare Learning Companies competitors 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.