Contrasting Franklin Covey (FC) and Its Rivals

Franklin Covey (NYSE:FC) is one of 20 public companies in the “Consulting” industry, but how does it contrast to its peers? We will compare Franklin Covey to related businesses based on the strength of its profitability, institutional ownership, dividends, valuation, analyst recommendations, risk and earnings.

Valuation and Earnings

This table compares Franklin Covey and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Franklin Covey	$287.23 million	$23.40 million	27.65
Franklin Covey Competitors	$3.11 billion	$272.15 million	23.38

Franklin Covey’s peers have higher revenue and earnings than Franklin Covey. Franklin Covey 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.

Analyst Ratings

This is a summary of current recommendations for Franklin Covey and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Covey	0	0	1	0	3.00
Franklin Covey Competitors	69	677	1253	61	2.63

Franklin Covey currently has a consensus target price of $35.00, suggesting a potential upside of 60.22%. As a group, “Consulting” companies have a potential upside of 21.31%. Given Franklin Covey’s stronger consensus rating and higher probable upside, equities analysts plainly believe Franklin Covey is more favorable than its peers.

Profitability

This table compares Franklin Covey and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Franklin Covey	3.81%	18.28%	5.98%
Franklin Covey Competitors	7.79%	28.02%	8.76%

Insider & Institutional Ownership

69.9% of Franklin Covey shares are owned by institutional investors. Comparatively, 85.1% of shares of all “Consulting” companies are owned by institutional investors. 15.5% of Franklin Covey shares are owned by company insiders. Comparatively, 5.6% of shares of all “Consulting” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Franklin Covey has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Franklin Covey’s peers have a beta of 0.69, meaning that their average stock price is 31% less volatile than the S&P 500.

Summary

Franklin Covey peers beat Franklin Covey on 7 of the 13 factors compared.

Franklin Covey Company Profile

Franklin Covey Co. provides training and consulting services in the areas of execution, sales performance, productivity, customer loyalty, and educational improvement for organizations and individuals worldwide. The company operates through Direct Offices, International Licensees, and Education Practice segments. It also provides a suite of individual-effectiveness and leadership-development training and products. In addition, the company operates Strive platform, a learning deployment platform; Impact platform that helps automate implementation of learning initiatives; All Access Pass, a subscription platform that enables improved deployment of content, services, technology, and metrics to deliver behavioral impact at scale; and Leader in Me, which provides access to digital versions of student leadership guides, leadership lessons, illustrated leadership stories, and other resources. Franklin Covey Co. was incorporated in 1983 and is headquartered in Salt Lake City, Utah.