Contrasting KinderCare Learning Companies (KLC) and The Competition

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

Analyst Ratings

This is a summary of recent ratings and target prices for KinderCare Learning Companies and its peers, as reported 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	383	770	1412	79	2.45

KinderCare Learning Companies presently has a consensus price target of $4.63, indicating a potential upside of 35.54%. As a group, “SCHOOLS” companies have a potential upside of 20.15%. Given KinderCare Learning Companies’ higher possible upside, research analysts plainly believe KinderCare Learning Companies is more favorable than its peers.

Earnings and Valuation

This table compares KinderCare Learning Companies and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
KinderCare Learning Companies	$2.73 billion	-$112.88 million	-3.59
KinderCare Learning Companies Competitors	$998.27 million	$62.93 million	15.63

KinderCare Learning Companies has higher revenue, but lower earnings than its peers. KinderCare Learning Companies 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.

Profitability

This table compares KinderCare Learning Companies and its peers’ 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%

Institutional and Insider Ownership

46.8% of shares of all “SCHOOLS” companies are owned by institutional investors. 5.3% of KinderCare Learning Companies shares are owned by company insiders. Comparatively, 29.0% of shares of all “SCHOOLS” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

KinderCare Learning Companies has a beta of 2.33, suggesting that its share price is 133% more volatile than the S&P 500. Comparatively, KinderCare Learning Companies’ peers have a beta of 0.19, suggesting that their average share price is 81% less volatile than the S&P 500.

Summary

KinderCare Learning Companies peers 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.