Head-To-Head Analysis: Benesse (OTCMKTS:BSEFY) & Universal Technical Institute (NYSE:UTI)

Benesse (OTCMKTS:BSEFY) and Universal Technical Institute (NYSE:UTI) are both consumer defensive companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Institutional and Insider Ownership

0.0% of Benesse shares are held by institutional investors. Comparatively, 75.7% of Universal Technical Institute shares are held by institutional investors. 27.6% of Universal Technical Institute shares 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 current recommendations and price targets for Benesse and Universal Technical Institute, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Benesse	0	0	0	0	N/A
Universal Technical Institute	0	1	5	0	2.83

Universal Technical Institute has a consensus target price of $15.20, suggesting a potential upside of 4.32%. Given Universal Technical Institute’s higher possible upside, analysts clearly believe Universal Technical Institute is more favorable than Benesse.

Valuation & Earnings

This table compares Benesse and Universal Technical Institute’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Benesse	N/A	N/A	N/A	$55.01	0.30
Universal Technical Institute	$607.41 million	0.82	$12.32 million	$0.26	56.04

Universal Technical Institute has higher revenue and earnings than Benesse. Benesse is trading at a lower price-to-earnings ratio than Universal Technical Institute, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Benesse and Universal Technical Institute’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Benesse	N/A	N/A	N/A
Universal Technical Institute	2.41%	9.25%	2.20%

Summary

Universal Technical Institute beats Benesse on 9 of the 10 factors compared between the two stocks.

About Benesse

Benesse Holdings, Inc. provides educational, and nursing care and childcare services in Japan and internationally. The company operates through three segments: Domestic Education Business; Nursing Care and Childcare Business; and Kids & Family Business. The company engages in the correspondence course business, school and teacher support business, cram school business, English language lessons for children business, and other businesses for preschool to high school students; and nursing care and childcare business, which include the operation of nursing homes for seniors comprising fee-based homes and elderly houses with care services, home help and daytime nursing care services, food delivery, and daycare and afterschool care services. It also offers information and products relating to pregnancy, childbirth, and parenting; lifestyle information and support everyday living through forums for communication with customers; and magazines, websites, and others to help enrich life with pets. The company was formerly known as Benesse Corporation and changed its name to Benesse Holdings, Inc. in 2009. Benesse Holdings, Inc. was incorporated in 1955 and is headquartered in Okayama, Japan.

About Universal Technical Institute

Universal Technical Institute, Inc. provides transportation, skilled trades, and healthcare education programs in the United States. The company operates in two segments, UTI and Concorde. It offers certificate, diploma, or degree programs under various brands, such as Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology. 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. It serves students, partners, and communities by providing education and support services in various fields. Universal Technical Institute, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.