Head to Head Analysis: Jacobs Solutions (NYSE:J) versus Franklin Covey (NYSE:FC)

Franklin Covey (NYSE:FC) and Jacobs Solutions (NYSE:J) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Franklin Covey and Jacobs Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Covey	1	1	2	0	2.25
Jacobs Solutions	0	6	5	0	2.45

Franklin Covey presently has a consensus price target of $27.50, indicating a potential upside of 87.71%. Jacobs Solutions has a consensus price target of $156.78, indicating a potential downside of 1.06%. Given Franklin Covey’s higher probable upside, equities research analysts clearly believe Franklin Covey is more favorable than Jacobs Solutions.

Volatility & Risk

Franklin Covey has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Jacobs Solutions has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.

Valuation and Earnings

This table compares Franklin Covey and Jacobs Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franklin Covey	$261.45 million	0.63	$4.92 million	$0.45	32.56
Jacobs Solutions	$12.03 billion	1.56	$289.34 million	$2.82	56.19

Jacobs Solutions has higher revenue and earnings than Franklin Covey. Franklin Covey is trading at a lower price-to-earnings ratio than Jacobs Solutions, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

69.9% of Franklin Covey shares are owned by institutional investors. Comparatively, 85.7% of Jacobs Solutions shares are owned by institutional investors. 15.2% of Franklin Covey shares are owned by company insiders. Comparatively, 0.5% of Jacobs Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Franklin Covey and Jacobs Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Franklin Covey	1.88%	25.57%	5.52%
Jacobs Solutions	2.40%	23.96%	7.02%

Summary

Jacobs Solutions beats Franklin Covey on 10 of the 14 factors compared between the two stocks.

About Franklin Covey

Franklin Covey Co. (NYSE: FC) is a global professional-services and training company that helps organizations improve leadership, execution, productivity, sales performance and workplace culture. Its services are designed for businesses, government agencies and other institutions seeking to develop employees and improve organizational performance. The company provides consulting, training, coaching, assessment tools and digital learning solutions. Its offerings address areas such as leadership development, trust, change management, business execution, customer loyalty and individual effectiveness.

About Jacobs Solutions

Jacobs Solutions Inc. is a global professional services company that provides consulting, advisory, engineering, design and project and program management services. Its work spans infrastructure, water, environmental services, transportation, energy and advanced facilities, including projects for life sciences and advanced manufacturing clients. The company serves public- and private-sector clients in markets around the world. Founded in 1947 by Joseph J. Jacobs, the business grew from an engineering firm into a multinational services provider.