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

Analyst Ratings

This is a breakdown of current ratings 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 241 863 933 34 2.37

Arco Platform currently has a consensus price target of $27.00, indicating a potential downside of 19.21%. As a group, “Educational services” companies have a potential upside of 17.63%. Given Arco Platform’s peers higher possible upside, analysts clearly believe Arco Platform has less favorable growth aspects than its peers.

Institutional and Insider Ownership

56.2% of shares of all “Educational services” companies are held by institutional investors. 23.0% of shares of all “Educational services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Arco Platform $100.06 million N/A 123.78
Arco Platform Competitors $539.47 million $36.16 million 12.52

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.

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 1,881.17% -27.04% -7.20%

Summary

Arco Platform peers beat Arco Platform on 6 of the 11 factors compared.

About Arco Platform

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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