Analyzing Arco Platform (NASDAQ:ARCE) and Its Peers

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Arco Platform and its rivals, 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 245 878 946 37 2.37

Arco Platform currently has a consensus target price of $27.00, indicating a potential downside of 18.43%. As a group, “Educational services” companies have a potential upside of 14.09%. Given Arco Platform’s rivals higher possible upside, analysts plainly believe Arco Platform has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

56.4% 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Arco Platform and its rivals’ 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 1,817.17% -53.36% -4.73%

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Arco Platform $100.06 million N/A 122.59
Arco Platform Competitors $562.90 million $40.46 million 9.40

Arco Platform’s rivals have higher revenue and earnings than Arco Platform. Arco Platform 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.

Summary

Arco Platform rivals beat Arco Platform on 6 of the 11 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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