Financial Analysis: K12 (LRN) vs. Its Peers
K12 (NYSE: LRN) is one of 22 publicly-traded companies in the “General Education Services” industry, but how does it weigh in compared to its peers? We will compare K12 to related companies based on the strength of its dividends, profitability, risk, institutional ownership, valuation, analyst recommendations and earnings.
This is a summary of recent ratings and price targets for K12 and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
K12 currently has a consensus price target of $21.00, suggesting 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, equities research analysts plainly believe K12 is more favorable than its peers.
Valuation & Earnings
This table compares K12 and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|K12 Competitors||$963.13 million||$64.88 million||-5.78|
K12’s peers have higher revenue and earnings than K12. K12 is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Institutional and 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 insiders. Comparatively, 13.9% of shares of all “General Education Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
K12 has a beta of -0.26, indicating that its stock price is 126% less volatile than the S&P 500. Comparatively, K12’s peers have a beta of 1.05, indicating that their average stock price is 5% more volatile than the S&P 500.
This table compares K12 and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
K12 beats its peers 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.
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