Financial Comparison: KinderCare Learning Companies (KLC) & Its Peers

KinderCare Learning Companies (NYSE:KLC) is one of 166 public companies in the “Diversified Consumer Services” industry, but how does it contrast to its peers? We will compare KinderCare Learning Companies to similar businesses based on the strength of its risk, profitability, earnings, valuation, dividends, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

49.0% of shares of all “Diversified Consumer Services” companies are owned by institutional investors. 5.8% of KinderCare Learning Companies shares are owned by insiders. Comparatively, 19.5% of shares of all “Diversified Consumer Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings 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	5	5	1	0	1.64
KinderCare Learning Companies Competitors	1432	3426	5275	196	2.41

KinderCare Learning Companies presently has a consensus target price of $3.77, suggesting a potential upside of 85.15%. As a group, “Diversified Consumer Services” companies have a potential upside of 64.29%. Given KinderCare Learning Companies’ higher probable upside, equities 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 top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
KinderCare Learning Companies	$2.73 billion	-$112.88 million	-0.51
KinderCare Learning Companies Competitors	$3.24 billion	$219.82 million	11.89

KinderCare Learning Companies’ peers have higher revenue and earnings than KinderCare Learning Companies. 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	-17.23%	6.65%	1.21%
KinderCare Learning Companies Competitors	-3.43%	-28.38%	2.46%

Volatility & Risk

KinderCare Learning Companies has a beta of 3.86, indicating that its stock price is 286% more volatile than the S&P 500. Comparatively, KinderCare Learning Companies’ peers have a beta of 0.47, indicating that their average stock price is 53% less volatile than the S&P 500.

Summary

KinderCare Learning Companies peers beat KinderCare Learning Companies on 10 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.