Universal Technical Institute (NYSE:UTI) and Grand Canyon Education (NASDAQ:LOPE) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.
Earnings and Valuation
This table compares Universal Technical Institute and Grand Canyon Education’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Universal Technical Institute||$316.96 million||0.27||-$32.68 million||($1.62)||-2.04|
|Grand Canyon Education||$845.50 million||6.74||$229.01 million||$5.09||23.21|
Risk and Volatility
Universal Technical Institute has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, Grand Canyon Education has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.
This is a summary of current ratings and price targets for Universal Technical Institute and Grand Canyon Education, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Universal Technical Institute||0||0||0||0||N/A|
|Grand Canyon Education||0||0||4||0||3.00|
Grand Canyon Education has a consensus price target of $134.25, indicating a potential upside of 13.62%. Given Grand Canyon Education’s higher probable upside, analysts plainly believe Grand Canyon Education is more favorable than Universal Technical Institute.
Institutional & Insider Ownership
60.0% of Universal Technical Institute shares are held by institutional investors. Comparatively, 96.2% of Grand Canyon Education shares are held by institutional investors. 30.1% of Universal Technical Institute shares are held by company insiders. Comparatively, 2.0% of Grand Canyon Education shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Universal Technical Institute and Grand Canyon Education’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Universal Technical Institute||-11.16%||-25.21%||-11.49%|
|Grand Canyon Education||29.80%||21.50%||18.16%|
Grand Canyon Education beats Universal Technical Institute on 11 of the 13 factors compared between the two stocks.
About Universal Technical Institute
Universal Technical Institute, Inc. provides postsecondary education for students seeking careers as professional automotive, diesel, collision repair, motorcycle, and marine technicians in the United States. It offers certificate, diploma, or degree programs; and specialized technical education programs under various brands, such as Universal Technical Institute, Motorcycle Mechanics Institute and Marine Mechanics Institute, and NASCAR Technical Institute. The company also provides manufacturer specific advanced training programs, including student paid electives at its campuses; and manufacturer or dealer sponsored training at various campuses and dedicated training centers, as well as offers undergraduate diploma programs for welding and computer numeric control machining. It operates 13 campuses. The company was founded in 1965 and is headquartered in Scottsdale, Arizona.
About Grand Canyon Education
Grand Canyon Education, Inc. provides education services in the United States. It offers technology and academic, counseling and support, and marketing and communication services, as well as back office services, such as financial aid processing, accounting, reporting, tax, human resources, and procurement services to the Grand Canyon University. The company, through its subsidiary Orbis Education Services, LLC, provides support services for healthcare education programs in 17 universities. Grand Canyon Education, Inc. was founded in 1949 and is headquartered in Phoenix, Arizona.
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