Care.com (NYSE: CRCM) is one of 51 publicly-traded companies in the “Internet Services” industry, but how does it compare to its peers? We will compare Care.com to similar businesses based on the strength of its risk, institutional ownership, profitability, dividends, earnings, analyst recommendations and valuation.

Insider and Institutional Ownership

73.7% of Care.com shares are owned by institutional investors. Comparatively, 63.0% of shares of all “Internet Services” companies are owned by institutional investors. 24.7% of Care.com shares are owned by insiders. Comparatively, 22.2% of shares of all “Internet Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Care.com and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Care.com 0 1 1 0 2.50
Care.com Competitors 400 1563 2634 86 2.51

Care.com currently has a consensus price target of $14.00, suggesting a potential downside of 11.17%. As a group, “Internet Services” companies have a potential upside of 1.56%. Given Care.com’s peers stronger consensus rating and higher probable upside, analysts clearly believe Care.com has less favorable growth aspects than its peers.

Volatility & Risk

Care.com has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Care.com’s peers have a beta of 1.35, indicating that their average stock price is 35% more volatile than the S&P 500.

Profitability

This table compares Care.com and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Care.com 3.66% 10.98% 4.67%
Care.com Competitors 0.28% 26.71% 6.23%

Earnings and Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Care.com $169.64 million $8.45 million 157.62
Care.com Competitors $942.22 million $116.70 million 55.13

Care.com’s peers have higher revenue and earnings than Care.com. Care.com 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.

Summary

Care.com peers beat Care.com on 9 of the 13 factors compared.

Care.com Company Profile

Care.com, Inc. is an online marketplace for finding and managing family care. As of December 31, 2016, the Company had 22.8 million members, including 12.9 million families and 9.9 million caregivers, spanning 19 countries. Its consumer matching solutions allow families to search for, qualify, vet, connect with and select caregivers. It also provides caregivers with solutions to create personal profiles, describe their skills and experience, and otherwise differentiate and market themselves in a fragmented marketplace. In addition to consumer matching solutions, the Company offers its members products and services to facilitate their interaction with caregivers. It serves employers by providing access to certain of its products and services to employer-sponsored families. In addition, it serves care-related businesses, such as day care centers, nanny agencies and home care agencies, willing to market their services to its care-seeking families and recruit its caregiver members.

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