Head-To-Head Analysis: Arco Platform (ARCE) vs. Its Rivals

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

Earnings & Valuation

This table compares Arco Platform and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Arco Platform $100.06 million N/A 121.48
Arco Platform Competitors $539.47 million $36.16 million 12.44

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.

Analyst Ratings

This is a summary of current ratings for Arco Platform and its rivals, as reported 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, suggesting a potential downside of 17.68%. As a group, “Educational services” companies have a potential upside of 17.65%. Given Arco Platform’s rivals higher possible upside, analysts plainly believe Arco Platform has less favorable growth aspects than its rivals.

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 1,881.17% -27.04% -7.20%

Insider & Institutional 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 hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Arco Platform rivals 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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