Nord Anglia Education (NYSE: NORD) and Strayer Education (NASDAQ:STRA) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.
Strayer Education pays an annual dividend of $1.00 per share and has a dividend yield of 1.3%. Nord Anglia Education does not pay a dividend. Strayer Education pays out 31.2% of its earnings in the form of a dividend.
This table compares Nord Anglia Education and Strayer Education’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nord Anglia Education||6.71%||22.11%||3.06%|
Institutional and Insider Ownership
35.3% of Nord Anglia Education shares are held by institutional investors. Comparatively, 92.4% of Strayer Education shares are held by institutional investors. 2.7% of Nord Anglia Education shares are held by insiders. Comparatively, 6.7% of Strayer Education shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Volatility & Risk
Nord Anglia Education has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Strayer Education has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.
Earnings and Valuation
This table compares Nord Anglia Education and Strayer Education’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Nord Anglia Education||$907.80 million||3.73||$173.60 million||$0.57||57.11|
|Strayer Education||$449.07 million||1.84||$77.90 million||$3.21||24.07|
Nord Anglia Education has higher revenue and earnings than Strayer Education. Strayer Education is trading at a lower price-to-earnings ratio than Nord Anglia Education, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for Nord Anglia Education and Strayer Education, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nord Anglia Education||1||5||2||0||2.13|
Nord Anglia Education currently has a consensus target price of $30.50, suggesting a potential downside of 6.30%. Strayer Education has a consensus target price of $83.75, suggesting a potential upside of 8.41%. Given Strayer Education’s stronger consensus rating and higher possible upside, analysts clearly believe Strayer Education is more favorable than Nord Anglia Education.
About Nord Anglia Education
Nord Anglia Education, Inc. is an operator of international schools. As of August 31, 2016, the Company taught over 37,000 students, from kindergarten through the end of secondary school (K-12), at its 43 schools in China, Europe, the Middle East, South East Asia and North America. The Company’s segments include China, Europe, Middle East (ME), Southeast Asia (SEA), North America and Other. The China segment includes its activities in the People’s Republic of China and the Hong Kong Special Administrative Region. The Europe segment includes the Company’s activities in Switzerland, Slovakia, Hungary, the Czech Republic, Spain and Poland. The ME segment includes the Company’s activities in the United Arab Emirates and Qatar. The SEA segment includes the Company’s activities in Thailand, Singapore, Cambodia and Vietnam. The North America segment includes the Company’s activities in the United States and Mexico. The Other segment includes the Learning Services division.
About Strayer Education
Strayer Education, Inc. is an education services holding company. The Company provides post-secondary education and other academic programs, through its subsidiaries, Strayer University (the University) and New York Code and Design Academy (NYCDA). As of December 31, 2016, the University offered undergraduate and graduate degree programs in business administration, accounting, information technology, education, health services administration, nursing, public administration and criminal justice at 74 physical campuses located in the Mid-Atlantic and Southern regions of the United States, and online. The University also offers an executive Master of Business Administration (MBA) online through its Jack Welch Management Institute. Its subsidiary, NYCDA, provides non-degree courses in Web and application software development, primarily at its campus in New York City. Each undergraduate degree program includes courses in oral and written communication skills, as well as mathematics.
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