Comparing Jacobs Solutions (NYSE:J) and Franklin Covey (NYSE:FC)

Franklin Covey (NYSE:FC) and Jacobs Solutions (NYSE:J) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Profitability

This table compares Franklin Covey and Jacobs Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Franklin Covey	0.83%	17.37%	4.04%
Jacobs Solutions	2.40%	23.96%	7.02%

Risk and Volatility

Franklin Covey has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Jacobs Solutions has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Franklin Covey and Jacobs Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Covey	1	1	2	0	2.25
Jacobs Solutions	0	6	5	0	2.45

Franklin Covey currently has a consensus price target of $27.50, suggesting a potential upside of 71.71%. Jacobs Solutions has a consensus price target of $156.78, suggesting a potential upside of 6.24%. Given Franklin Covey’s higher probable upside, research analysts clearly believe Franklin Covey is more favorable than Jacobs Solutions.

Insider and Institutional Ownership

69.9% of Franklin Covey shares are owned by institutional investors. Comparatively, 85.7% of Jacobs Solutions shares are owned by institutional investors. 15.2% of Franklin Covey shares are owned by insiders. Comparatively, 0.5% of Jacobs Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Franklin Covey and Jacobs Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franklin Covey	$267.07 million	0.68	$3.07 million	$0.17	94.21
Jacobs Solutions	$14.22 billion	1.23	$289.34 million	$2.82	52.33

Jacobs Solutions has higher revenue and earnings than Franklin Covey. Jacobs Solutions is trading at a lower price-to-earnings ratio than Franklin Covey, indicating that it is currently the more affordable of the two stocks.

Summary

Jacobs Solutions beats Franklin Covey on 10 of the 14 factors compared between the two stocks.

About Franklin Covey

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.

About Jacobs Solutions

Jacobs Solutions Inc. provides consulting, technical, engineering, scientific, and project delivery services for the government and private sectors in the United States, Europe, Canada, India, Asia, Australia, New Zealand, the Middle East, and Africa. It operates through Critical Mission Solutions, People & Places Solutions, Divergent Solutions, and PA Consulting segments. The company offers cyber, data analytics, systems and software application integration and consulting, enterprise level and mission IT, design, nuclear, and enterprise level operations and maintenance services; software development, testing, mission integration, program management, research, development, test, evaluation services, training, and environmental remediation services; and other technical consulting solutions, as well as construction and construction management services. It also provides consulting services for consumer and manufacturing, defense and security, energy and utilities, financial services, government, health and life sciences, and transport industries. The company was founded in 1947 and is headquartered in Dallas, Texas.