K12 (NYSE: LRN) is one of 20 publicly-traded companies in the “General Education Services” industry, but how does it weigh in compared to its rivals? We will compare K12 to related companies based on the strength of its institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Institutional and Insider Ownership

79.1% of K12 shares are held by institutional investors. Comparatively, 71.5% of shares of all “General Education Services” companies are held by institutional investors. 18.3% of K12 shares are held by insiders. Comparatively, 15.0% of shares of all “General Education Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

K12 has a beta of -0.23, indicating that its stock price is 123% less volatile than the S&P 500. Comparatively, K12’s rivals have a beta of 1.14, indicating that their average stock price is 14% more volatile than the S&P 500.

Earnings & Valuation

This table compares K12 and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
K12 $888.52 million $35.91 million 114.80
K12 Competitors $909.14 million $144.34 million 29.30

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% 3.20%
K12 Competitors 0.87% 0.38% 2.15%

Analyst Ratings

This is a summary of recent ratings and target prices 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 62 446 458 3 2.41

K12 presently has a consensus target price of $21.00, indicating a potential upside of 21.95%. As a group, “General Education Services” companies have a potential upside of 7.55%. Given K12’s stronger consensus rating and higher probable upside, equities research analysts clearly believe K12 is more favorable than its rivals.

Summary

K12 beats its rivals on 7 of the 13 factors compared.

About K12

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.

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