Head-To-Head Analysis: Care.com (NYSE:CRCM) & Its Peers

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

Risk & Volatility

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

Institutional and Insider Ownership

73.7% of Care.com shares are held by institutional investors. Comparatively, 62.7% of shares of all “Internet Services” companies are held by institutional investors. 24.7% of Care.com shares are held by company insiders. Comparatively, 22.2% of shares of all “Internet Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Care.com and its rivals, 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 405 1575 2650 86 2.51

Care.com presently has a consensus target price of $14.00, suggesting a potential downside of 10.49%. As a group, “Internet Services” companies have a potential upside of 2.51%. Given Care.com’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Care.com has less favorable growth aspects than its rivals.

Profitability

This table compares Care.com and its rivals’ 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 0.51% 26.77% 6.28%

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Care.com $169.64 million $8.45 million 156.42
Care.com Competitors $956.92 million $128.04 million 43.49

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

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

About Care.com

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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