Adtalem Global Education (NYSE:ATGE) and Laureate Education (NASDAQ:LAUR) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.
Profitability
This table compares Adtalem Global Education and Laureate Education's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Adtalem Global Education | -7.49% | 11.15% | 6.21% |
Laureate Education | -38.07% | 15.92% | 6.25% |
Earnings and Valuation
This table compares Adtalem Global Education and Laureate Education's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Adtalem Global Education | $1.05 billion | 1.87 | $-85,330,000.00 | $2.28 | 17.24 |
Laureate Education | $3.25 billion | 0.89 | $938.48 million | $0.07 | 196.43 |
Laureate Education has higher revenue and earnings than Adtalem Global Education. Adtalem Global Education is trading at a lower price-to-earnings ratio than Laureate Education, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Adtalem Global Education has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Laureate Education has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.
Institutional & Insider Ownership
93.8% of Adtalem Global Education shares are owned by institutional investors. Comparatively, 52.0% of Laureate Education shares are owned by institutional investors. 2.2% of Adtalem Global Education shares are owned by company insiders. Comparatively, 2.2% of Laureate Education shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Adtalem Global Education and Laureate Education, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Adtalem Global Education | 0 | 1 | 1 | 0 | 2.50 |
Laureate Education | 0 | 1 | 5 | 0 | 2.83 |
Adtalem Global Education currently has a consensus target price of $42.50, suggesting a potential upside of 8.14%. Laureate Education has a consensus target price of $15.25, suggesting a potential upside of 10.91%. Given Laureate Education's stronger consensus rating and higher possible upside, analysts plainly believe Laureate Education is more favorable than Adtalem Global Education.
Summary
Laureate Education beats Adtalem Global Education on 8 of the 14 factors compared between the two stocks.