Coursera (NYSE:COUR) and KinderCare Learning Companies (NYSE:KLC) Head to Head Comparison

Coursera (NYSE:COUR) and KinderCare Learning Companies (NYSE:KLC) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

89.5% of Coursera shares are held by institutional investors. 16.3% of Coursera shares are held by company insiders. Comparatively, 5.8% of KinderCare Learning Companies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Coursera and KinderCare Learning Companies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coursera	1	4	7	0	2.50
KinderCare Learning Companies	4	5	1	0	1.70

Coursera presently has a consensus target price of $8.55, suggesting a potential upside of 63.86%. KinderCare Learning Companies has a consensus target price of $4.13, suggesting a potential upside of 73.11%. Given KinderCare Learning Companies’ higher probable upside, analysts plainly believe KinderCare Learning Companies is more favorable than Coursera.

Profitability

This table compares Coursera and KinderCare Learning Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coursera	-15.39%	-1.72%	-1.07%
KinderCare Learning Companies	-17.23%	6.65%	1.21%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coursera	$757.50 million	1.82	-$51.00 million	($0.67)	-7.78
KinderCare Learning Companies	$2.73 billion	0.10	-$112.88 million	($3.98)	-0.60

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

Risk & Volatility

Coursera has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, KinderCare Learning Companies has a beta of 3.78, suggesting that its stock price is 278% more volatile than the S&P 500.

Summary

Coursera beats KinderCare Learning Companies on 8 of the 14 factors compared between the two stocks.

About Coursera

Coursera, Inc. operates an online educational content platform in the United States, Europe, Africa, the Asia Pacific, the Middle East, and internationally. It operates in three segments: Consumer, Enterprise, and Degrees. The company offers guided projects, courses, and specializations, as well as online degrees; and certificates for entry-level professional, non-entry level professional, university, and MasterTrack. It offers its products to individuals, enterprise, business, campus, and government. The company was formerly known as Dkandu, Inc. and changed its name to Coursera, Inc. in April 2012. Coursera, Inc. was incorporated in 2011 and is headquartered in Mountain View, California.

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.