Bridgepoint Education (NYSE: BPI) and Capella Education (NASDAQ:CPLA) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Institutional and Insider Ownership
91.7% of Bridgepoint Education shares are owned by institutional investors. Comparatively, 89.8% of Capella Education shares are owned by institutional investors. 41.5% of Bridgepoint Education shares are owned by insiders. Comparatively, 3.6% of Capella Education shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Capella Education pays an annual dividend of $1.64 per share and has a dividend yield of 2.0%. Bridgepoint Education does not pay a dividend. Capella Education pays out 46.3% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Bridgepoint Education and Capella Education’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Bridgepoint Education||$527.09 million||0.53||-$30.04 million||$0.14||68.93|
|Capella Education||$429.39 million||2.22||$42.96 million||$3.54||23.14|
Capella Education has higher revenue, but lower earnings than Bridgepoint Education. Capella Education is trading at a lower price-to-earnings ratio than Bridgepoint Education, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Bridgepoint Education has a beta of 2.21, indicating that its stock price is 121% more volatile than the S&P 500. Comparatively, Capella Education has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for Bridgepoint Education and Capella Education, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Bridgepoint Education currently has a consensus price target of $13.00, suggesting a potential upside of 34.72%. Capella Education has a consensus price target of $91.25, suggesting a potential upside of 11.42%. Given Bridgepoint Education’s higher possible upside, equities analysts clearly believe Bridgepoint Education is more favorable than Capella Education.
This table compares Bridgepoint Education and Capella Education’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Capella Education beats Bridgepoint Education on 10 of the 16 factors compared between the two stocks.
Bridgepoint Education Company Profile
Bridgepoint Education, Inc. (Bridgepoint) is a provider of postsecondary education services. The Company’s academic institutions include Ashford University and University of the Rockies. Bridgepoint’s institutions conduct ongoing faculty and student assessment processes, and provide a range of student services. It offers Constellation, its learning platform, Waypoint Outcomes, its assessment software, and its mobile application technology. As of December 31, 2016, its institutions offered over 1,200 courses and over 80 degree programs. Ashford University offers associate’s, bachelor’s and master’s degree programs online. Ashford University comprises four colleges: the Forbes School of Business and Technology, the College of Education, the College of Health, Human Services and Science, and the College of Liberal Arts. University of the Rockies is a graduate institution that offers master’s and doctoral degree programs in the social and behavioral sciences.
Capella Education Company Profile
Capella Education Company is an education services company. The Company provides direct path between learning and employment through its online postsecondary education offerings and through programs to develop job-ready skills for demand markets. The company’s segments include post-secondary segment and job-ready skills segment. The post-secondary segment has Capella University (the University) and Sophia Learning, LLC (Sophia). The job-ready skills segment has Capella Learning Solutions, LLC (CLS), Hackbright Academy, Inc. (Hackbright) and DevMountain, LLC (DevMountain). The Company’s program offers six markets, which include public service leadership; nursing and health sciences; social and behavioral sciences; business and technology; education and undergraduate studies. Capella University offers over 1,940 online courses and approximately 50 academic programs with approximately 150 specializations to approximately 38,000 learners.
What are top analysts saying about Bridgepoint Education Inc.? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Bridgepoint Education Inc. and related companies.