KinderCare Learning Companies (NYSE:KLC) vs. 17 Education & Technology Group (NYSE:YQ) Head to Head Analysis

17 Education & Technology Group (NYSE:YQ) and KinderCare Learning Companies (NYSE:KLC) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.

Institutional & Insider Ownership

3.5% of 17 Education & Technology Group shares are held by institutional investors. 23.1% of 17 Education & Technology Group shares are held by insiders. Comparatively, 5.8% of KinderCare Learning Companies shares are held 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.

Profitability

This table compares 17 Education & Technology Group and KinderCare Learning Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
17 Education & Technology Group	-113.55%	-38.90%	-28.18%
KinderCare Learning Companies	-17.23%	6.65%	1.21%

Risk and Volatility

17 Education & Technology Group has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, KinderCare Learning Companies has a beta of 3.78, suggesting that its share price is 278% more volatile than the S&P 500.

Valuation and Earnings

This table compares 17 Education & Technology Group and KinderCare Learning Companies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
17 Education & Technology Group	$248.49 million	0.16	-$43.92 million	($1.28)	-2.87
KinderCare Learning Companies	$2.74 billion	0.09	-$112.88 million	($3.98)	-0.55

17 Education & Technology Group has higher earnings, but lower revenue than KinderCare Learning Companies. 17 Education & Technology Group 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for 17 Education & Technology Group and KinderCare Learning Companies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
17 Education & Technology Group	0	1	1	0	2.50
KinderCare Learning Companies	4	5	1	0	1.70

KinderCare Learning Companies has a consensus price target of $4.06, suggesting a potential upside of 85.68%. Given KinderCare Learning Companies’ higher possible upside, analysts plainly believe KinderCare Learning Companies is more favorable than 17 Education & Technology Group.

Summary

KinderCare Learning Companies beats 17 Education & Technology Group on 7 of the 13 factors compared between the two stocks.

About 17 Education & Technology Group

17 Education & Technology Group, Inc. engages in the provision of educational technology solutions. Its in-school plus after-school integrated model delivers data-driven teaching, learning and assessment products to teachers, students and parents. The firm offers online K-12 large-class after-school tutoring services that complement students’ in-school learning. The company was founded by Jia Wei Gan and Bing Yuan on October 30, 2012 and is headquartered Beijing, China.

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.