I doubt potential has much, if anything, to do with it. I think the system evaluates each recruit along the same or a similar paradigm used to evaluate players for the NBA draft. It’s mostly, if not all based on how good the system thinks he is *right now*. Ranking isn’t directly involved necessarily, though ranked players tend to be starting higher than unranked, D1 pool players tend to start higher than D2 pool players, and so on. The one diversion here, and it relates to OP, is that juco players and transfers tend to start higher, but teams don’t get as much credit as one would expect for bringing them on; so I think the system also takes into account how long you will have him. It gives more credit for a player you will have for 4 seasons.
So averaging them out by overall isn’t going to tell the whole story, because like most users, the system knows OVR rating is pretty useless. You may notice that the system will hate it when you sign a project, it will drop you hard - this is why I’m pretty sure it ignores potential. And as others have noted, taking a walkon also hurts your class quite a bit. At D1, you’ll notice many of the “top classes” are teams that had only one opening, and used it to sign a 3 or 4 star recruit. It seems a little counterintuitive to think that class is ranked ahead of the classes that include all the 5 stars, but most of those classes also include either walkons or lesser recruits, and often both, to go along with the superstars.