KinderCare Learning Companies, Inc. (KLC) vs Lincoln Educational Services Corporation (LINC)

KinderCare Learning Companies, Inc. and Lincoln Educational Services Corporation are both Education & Training Services companies. Lincoln Educational Services Corporation is the larger, with a market value of $715.6M against $216.9M — 3.3× the size. KinderCare Learning Companies, Inc. has negative trailing earnings, so its P/E is not meaningful; Lincoln Educational Services Corporation trades at 30.4×. Lincoln Educational Services Corporation grew revenue faster over the last twelve months: 22.0% against 1.79%. Lincoln Educational Services Corporation has the higher net margin (3.99% vs −17.2%) and the higher return on invested capital (9.83% vs −20.9%). Across the 18 metrics below, Lincoln Educational Services Corporation leads on 13 and KinderCare Learning Companies, Inc. on 5.

Valuation

Metric KLC LINC Education & Training Services median
P/E n/m 30.44 13.22
P/S 0.08 1.22 0.99
P/B 0.45 3.43 1.62
Price to free cash flow 2.59 28.36 10.06
EV/EBITDA n/m 11.47 8.56
EV/Sales 0.35 1.24 0.78
Earnings yield (224.86%) 3.29% 3.17%
Free cash flow yield 38.57% 3.53% 2.81%

Profitability

Metric KLC LINC Education & Training Services median
Gross margin 19.17% 59.84% 54.64%
Operating margin (14.89%) 5.91% 0.00%
Net margin (17.23%) 3.99% 2.98%
Free cash flow margin 2.97% 4.29% 0.00%
Return on equity (67.78%) 11.90% 0.00%
Return on assets (13.10%) 4.67% 0.00%
Return on invested capital (20.89%) 9.83% 0.00%

Growth

Metric KLC LINC Education & Training Services median
Revenue growth (TTM) 1.79% 22.02% 6.97%
EPS growth (last fiscal year) 1.04% 100.00% 15.68%
Revenue growth, 5-year CAGR — 12.07% 4.27%
Net income growth, 5-year CAGR — (15.78%) 0.00%

Health

Metric KLC LINC Education & Training Services median
Debt to equity 1.99 0.28 0.05
Current ratio 0.75 0.96 1.33
Net debt to EBITDA 7.22 0.04 (0.15)

Dividend

Metric KLC LINC Education & Training Services median
Dividend yield — — 1.84%
Payout ratio — — 0.23

Size

Metric KLC LINC Education & Training Services median
Market cap 216.89m 715.63m 68.84m

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