RISE Education Cayman (NASDAQ:REDU) and American Public Education (NASDAQ:APEI) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.
Institutional & Insider Ownership
8.4% of RISE Education Cayman shares are owned by institutional investors. Comparatively, 91.7% of American Public Education shares are owned by institutional investors. 3.7% of American Public Education shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares RISE Education Cayman and American Public Education's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| RISE Education Cayman | -7.83% | -8.87% | -1.73% |
| American Public Education | 5.63% | 5.95% | 4.88% |
Earnings and Valuation
This table compares RISE Education Cayman and American Public Education's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| RISE Education Cayman | $219.69 million | 0.83 | $21.27 million | $0.53 | 6.08 |
| American Public Education | $286.27 million | 1.79 | $10.01 million | $1.09 | 25.11 |
RISE Education Cayman has higher earnings, but lower revenue than American Public Education. RISE Education Cayman is trading at a lower price-to-earnings ratio than American Public Education, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings for RISE Education Cayman and American Public Education, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| RISE Education Cayman | 0 | 0 | 1 | 0 | 3.00 |
| American Public Education | 0 | 1 | 6 | 0 | 2.86 |
American Public Education has a consensus price target of $41.3333, indicating a potential upside of 51.02%. Given American Public Education's higher possible upside, analysts clearly believe American Public Education is more favorable than RISE Education Cayman.
Risk & Volatility
RISE Education Cayman has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500. Comparatively, American Public Education has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.
Summary
American Public Education beats RISE Education Cayman on 11 of the 14 factors compared between the two stocks.
