Head to Head Contrast: Arco Platform (ARCE) and Its Competitors

Arco Platform (NASDAQ: ARCE) is one of 44 public companies in the “Educational services” industry, but how does it compare to its peers? We will compare Arco Platform to similar companies based on the strength of its profitability, analyst recommendations, valuation, risk, earnings, institutional ownership and dividends.

Institutional & Insider Ownership

56.2% of shares of all “Educational services” companies are owned by institutional investors. 22.9% of shares of all “Educational services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Arco Platform and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arco Platform N/A N/A N/A
Arco Platform Competitors 1,817.15% -53.41% -4.75%

Valuation and Earnings

This table compares Arco Platform and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Arco Platform $100.06 million N/A 112.70
Arco Platform Competitors $539.35 million $36.16 million 11.05

Arco Platform’s peers have higher revenue and earnings than Arco Platform. Arco Platform 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 breakdown of current recommendations and price targets for Arco Platform and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arco Platform 0 0 4 0 3.00
Arco Platform Competitors 242 866 935 34 2.37

Arco Platform presently has a consensus target price of $27.00, suggesting a potential downside of 11.27%. As a group, “Educational services” companies have a potential upside of 16.24%. Given Arco Platform’s peers higher possible upside, analysts clearly believe Arco Platform has less favorable growth aspects than its peers.

Summary

Arco Platform peers beat Arco Platform on 6 of the 10 factors compared.

Arco Platform Company Profile

Arco Platform Limited, a technology company in the education sector, provides a pedagogical system with technology-enabled features to deliver educational content to private schools in Brazil. The company's curriculum solutions provide educational content from basic to secondary education K-12 curriculum in printed and digital formats delivered through its platform. As of March 31, 2018, it had a network consisted of 1,140 partner schools and 405,814 enrolled students. The company's activities also comprise editing, publishing, advertising, and sale of educational content for private schools. It serves students, teachers, administrators, and parents. The company was founded in 2004 and is headquartered in São Paulo, Brazil.

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