Adtalem Global Education (NYSE:ATGE) and Grand Canyon Education (NASDAQ:LOPE) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.
Valuation & Earnings
This table compares Adtalem Global Education and Grand Canyon Education's gross 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 | 1.86 | $-85,330,000.00 | $2.28 | 17.10 |
| Grand Canyon Education | $778.64 million | 6.42 | $259.17 million | $5.58 | 19.13 |
Grand Canyon Education has lower revenue, but higher earnings than Adtalem Global Education. Adtalem Global Education is trading at a lower price-to-earnings ratio than Grand Canyon Education, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Adtalem Global Education and Grand Canyon 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% |
| Grand Canyon Education | 30.17% | 17.20% | 14.47% |
Volatility & Risk
Adtalem Global Education has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Grand Canyon Education has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Adtalem Global Education and Grand Canyon Education, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Adtalem Global Education | 0 | 1 | 1 | 0 | 2.50 |
| Grand Canyon Education | 0 | 0 | 5 | 0 | 3.00 |
Adtalem Global Education presently has a consensus target price of $42.50, indicating a potential upside of 9.00%. Grand Canyon Education has a consensus target price of $118.00, indicating a potential upside of 10.57%. Given Grand Canyon Education's stronger consensus rating and higher probable upside, analysts clearly believe Grand Canyon Education is more favorable than Adtalem Global Education.
Insider & Institutional Ownership
93.8% of Adtalem Global Education shares are owned by institutional investors. Comparatively, 97.1% of Grand Canyon Education shares are owned by institutional investors. 2.2% of Adtalem Global Education shares are owned by company insiders. Comparatively, 2.0% of Grand Canyon Education shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Grand Canyon Education beats Adtalem Global Education on 11 of the 14 factors compared between the two stocks.
