Analyzing Franklin Covey (FC) and Its Rivals

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

Earnings & Valuation

This table compares Franklin Covey and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Franklin Covey	$287.23 million	$23.40 million	25.45
Franklin Covey Competitors	$3.00 billion	$272.15 million	22.75

Franklin Covey’s rivals have higher revenue and earnings than Franklin Covey. Franklin Covey is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Franklin Covey	3.81%	19.08%	6.12%
Franklin Covey Competitors	7.79%	28.08%	8.77%

Insider & Institutional Ownership

69.9% of Franklin Covey shares are held by institutional investors. Comparatively, 85.1% of shares of all “Consulting” companies are held by institutional investors. 15.5% of Franklin Covey shares are held by insiders. Comparatively, 5.1% of shares of all “Consulting” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Franklin Covey has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Franklin Covey’s rivals have a beta of 0.69, indicating that their average stock price is 31% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Franklin Covey and its rivals, as provided 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	679	1256	61	2.63

Franklin Covey currently has a consensus price target of $31.00, suggesting a potential upside of 54.21%. As a group, “Consulting” companies have a potential upside of 24.30%. Given Franklin Covey’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Franklin Covey is more favorable than its rivals.

Summary

Franklin Covey rivals beat Franklin Covey on 7 of the 13 factors compared.

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.