Head-To-Head Comparison: K12 (LRN) and Its Rivals

K12 (NYSE: LRN) is one of 22 public companies in the “General Education Services” industry, but how does it weigh in compared to its rivals? We will compare K12 to similar companies based on the strength of its dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Institutional and Insider Ownership

79.1% of K12 shares are held by institutional investors. Comparatively, 66.7% of shares of all “General Education Services” companies are held by institutional investors. 18.3% of K12 shares are held by insiders. Comparatively, 13.9% of shares of all “General Education Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for K12 and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
K12 0 0 1 0 3.00
K12 Competitors 64 450 465 3 2.41

K12 presently has a consensus target price of $21.00, indicating a potential upside of 30.60%. As a group, “General Education Services” companies have a potential upside of 8.10%. Given K12’s stronger consensus rating and higher probable upside, analysts clearly believe K12 is more favorable than its rivals.

Valuation & Earnings

This table compares K12 and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
K12 $888.52 million $450,000.00 107.20
K12 Competitors $963.13 million $64.88 million 13.20

K12’s rivals have higher revenue and earnings than K12. K12 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 K12 and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
K12 0.70% 4.16% 3.17%
K12 Competitors 0.83% 0.20% 2.07%

Risk & Volatility

K12 has a beta of -0.26, indicating that its share price is 126% less volatile than the S&P 500. Comparatively, K12’s rivals have a beta of 1.06, indicating that their average share price is 6% more volatile than the S&P 500.

Summary

K12 beats its rivals on 8 of the 13 factors compared.

K12 Company Profile

K12 Inc. (K12) is a technology-based education company. The Company offers curriculum, software systems and educational services designed to facilitate individualized learning for students in kindergarten through 12th grade (K-12). It provides a continuum of technology-based educational products and solutions to public school districts, public schools, virtual charter schools, private schools and families. The Company offers a set of products and services primarily to three lines of business, which include Managed Public School Programs, which consists of virtual and blended schools; Institutional business, which includes educational products and services sold to school districts, public schools and other educational institutions, and Private Pay Schools and Other, which includes private schools, including international, for which it charges student tuition and direct consumer sales. It sells individual online courses and supplemental educational products directly to families.

What are top analysts saying about K12 Inc? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for K12 Inc and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit