Care.com (NYSE: CRCM) is one of 50 public companies in the “Internet Services” industry, but how does it contrast to its competitors? We will compare Care.com to related businesses based on the strength of its analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Institutional and Insider Ownership

73.7% of Care.com shares are owned by institutional investors. Comparatively, 63.3% 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Care.com and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Care.com 0 1 1 0 2.50
Care.com Competitors 396 1533 2579 84 2.51

Care.com currently has a consensus price target of $14.00, indicating a potential downside of 14.69%. As a group, “Internet Services” companies have a potential upside of 1.94%. Given Care.com’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Care.com has less favorable growth aspects than its competitors.

Volatility & Risk

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

Valuation and Earnings

This table compares Care.com and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Care.com $169.64 million $8.45 million 164.12
Care.com Competitors $942.22 million $116.70 million 56.02

Care.com’s competitors have higher revenue and earnings than Care.com. Care.com is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

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

Net Margins Return on Equity Return on Assets
Care.com 3.99% 4.85% 4.03%
Care.com Competitors -0.13% 26.65% 6.17%

Summary

Care.com competitors 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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