Strategic Education (NASDAQ:STRA) and Stride (NYSE:LRN) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.
Risk & Volatility
Strategic Education has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Stride has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.
Institutional and Insider Ownership
87.8% of Strategic Education shares are owned by institutional investors. Comparatively, 87.1% of Stride shares are owned by institutional investors. 2.0% of Strategic Education shares are owned by insiders. Comparatively, 4.0% of Stride shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Strategic Education and Stride's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Strategic Education | $997.14 million | 2.23 | $81.14 million | $6.67 | 13.63 |
Stride | $1.04 billion | 0.96 | $24.51 million | $0.60 | 40.08 |
Strategic Education has higher earnings, but lower revenue than Stride. Strategic Education is trading at a lower price-to-earnings ratio than Stride, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings for Strategic Education and Stride, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Strategic Education | 0 | 1 | 4 | 0 | 2.80 |
Stride | 0 | 1 | 3 | 0 | 2.75 |
Strategic Education presently has a consensus price target of $143.40, suggesting a potential upside of 57.72%. Stride has a consensus price target of $43.75, suggesting a potential upside of 81.91%. Given Stride's higher probable upside, analysts plainly believe Stride is more favorable than Strategic Education.
Profitability
This table compares Strategic Education and Stride's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Strategic Education | 10.63% | 10.88% | 8.97% |
Stride | 4.06% | 6.92% | 4.32% |
Summary
Strategic Education beats Stride on 10 of the 14 factors compared between the two stocks.