KinderCare Learning Companies (KLC) vs. Its Peers Financial Analysis

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

Valuation and Earnings

This table compares KinderCare Learning Companies and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
KinderCare Learning Companies	$2.73 billion	-$112.88 million	-2.87
KinderCare Learning Companies Competitors	$1.31 billion	$63.00 million	15.35

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

Profitability

This table compares KinderCare Learning Companies and its rivals’ 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	6.98%	4.96%	5.16%

Volatility & Risk

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’ rivals have a beta of 0.25, suggesting that their average share price is 75% less volatile than the S&P 500.

Insider & Institutional Ownership

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

Analyst Recommendations

This is a summary of recent ratings and price targets for KinderCare Learning Companies and its rivals, 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	378	766	1408	76	2.45

KinderCare Learning Companies presently has a consensus target price of $4.63, suggesting a potential upside of 69.86%. As a group, “SCHOOLS” companies have a potential upside of 21.63%. Given KinderCare Learning Companies’ higher possible upside, equities analysts plainly believe KinderCare Learning Companies is more favorable than its rivals.

Summary

KinderCare Learning Companies rivals beat KinderCare Learning Companies on 9 of the 13 factors compared.

KinderCare Learning Companies Company Profile

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.