Head-To-Head Review: K12 (NYSE:LRN) & Its Competitors

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

Volatility & Risk

K12 has a beta of -0.27, meaning that its stock price is 127% less volatile than the S&P 500. Comparatively, K12’s rivals have a beta of 1.17, meaning that their average stock price is 17% more volatile than the S&P 500.

Institutional & Insider Ownership

78.5% of K12 shares are held by institutional investors. Comparatively, 72.5% of shares of all “General Education Services” companies are held by institutional investors. 9.6% of K12 shares are held by company insiders. Comparatively, 14.2% of shares of all “General Education Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
K12 0 0 1 0 3.00
K12 Competitors 66 465 476 5 2.42

K12 currently has a consensus target price of $21.00, suggesting a potential upside of 29.87%. As a group, “General Education Services” companies have a potential upside of 10.66%. Given K12’s stronger consensus rating and higher possible upside, equities research analysts plainly believe K12 is more favorable than its rivals.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
K12 $888.52 million $450,000.00 107.80
K12 Competitors $840.78 million $56.64 million 0.99

K12 has higher revenue, but lower earnings than its rivals. 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 0.31% -1.07% 1.45%

Summary

K12 beats its rivals on 9 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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