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

Risk and Volatility

K12 has a beta of -0.25, suggesting that its stock price is 125% less volatile than the S&P 500. Comparatively, K12’s competitors have a beta of 1.11, suggesting that their average stock price is 11% more volatile than the S&P 500.

Valuation & Earnings

This table compares K12 and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
K12 $888.52 million $35.91 million 108.13
K12 Competitors $909.14 million $144.34 million 28.96

K12’s competitors have higher revenue and earnings than K12. K12 is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and target prices for K12 and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
K12 0 0 1 0 3.00
K12 Competitors 64 449 464 3 2.41

K12 currently has a consensus price target of $21.00, indicating a potential upside of 29.47%. As a group, “General Education Services” companies have a potential upside of 5.21%. Given K12’s stronger consensus rating and higher probable upside, equities analysts plainly believe K12 is more favorable than its competitors.

Profitability

This table compares K12 and its competitors’ 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 0.85% 0.23% 2.10%

Institutional & Insider Ownership

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

Summary

K12 beats its competitors 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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