GP Strategies (NYSE: GPX) and Universal Technical Institute (NYSE:UTI) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.
Institutional and Insider Ownership
88.9% of GP Strategies shares are held by institutional investors. Comparatively, 57.7% of Universal Technical Institute shares are held by institutional investors. 25.7% of GP Strategies shares are held by company insiders. Comparatively, 13.3% of Universal Technical Institute shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares GP Strategies and Universal Technical Institute’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Universal Technical Institute||-2.51%||-5.65%||-2.70%|
Volatility and Risk
GP Strategies has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Universal Technical Institute has a beta of 3.47, indicating that its stock price is 247% more volatile than the S&P 500.
Valuation and Earnings
This table compares GP Strategies and Universal Technical Institute’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|GP Strategies||$490.56 million||0.78||$20.24 million||$1.18||19.41|
|Universal Technical Institute||$324.26 million||0.22||-$8.12 million||($0.53)||-5.47|
GP Strategies has higher revenue and earnings than Universal Technical Institute. Universal Technical Institute is trading at a lower price-to-earnings ratio than GP Strategies, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations for GP Strategies and Universal Technical Institute, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Universal Technical Institute||0||1||0||0||2.00|
GP Strategies presently has a consensus price target of $29.50, indicating a potential upside of 28.82%. Universal Technical Institute has a consensus price target of $6.00, indicating a potential upside of 106.90%. Given Universal Technical Institute’s higher probable upside, analysts clearly believe Universal Technical Institute is more favorable than GP Strategies.
GP Strategies beats Universal Technical Institute on 11 of the 13 factors compared between the two stocks.
GP Strategies Company Profile
GP Strategies Corporation (GP Strategies) is a global performance improvement solutions provider of sales and technical training, e-learning solutions, management consulting and engineering services. The Company operates in five segments: Learning Solutions, Professional & Technical Services, Sandy Training & Marketing, RWD and Energy Services. Its clients include companies and governmental and other commercial customers in a variety of industries. It serves companies in the automotive, steel, oil and gas, power, chemical, electronics and technology, manufacturing, software, financial, retail, healthcare and food and beverage industries, as well as government agencies. On December 31, 2011, GP Strategies Corporation merged with and into its operating subsidiary, General Physics Corporation (General Physics). In April 2014, the Company acquired Effective-People and Effective-Learning companies.
Universal Technical Institute Company Profile
Universal Technical Institute, Inc. is a provider of postsecondary education for students seeking careers as professional automotive, diesel, collision repair, motorcycle and marine technicians as measured by total average undergraduate full-time enrollment and graduates. The Company offers undergraduate degree or diploma programs at approximately 12 campuses across the United States under the banner of various brands, including Universal Technical Institute (UTI), Motorcycle Mechanics Institute and Marine Mechanics Institute (collectively, MMI) and NASCAR Technical Institute (NASCAR Tech). The Company also offers manufacturer specific advanced training (MSAT) programs, including student-paid electives, at its campuses and manufacturer or dealer sponsored training at certain campuses and dedicated training centers. UTI offers automotive, diesel and industrial, and collision repair and refinishing programs.
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