GP Strategies (NYSE:GPX) and Strategic 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 profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.
This table compares GP Strategies and Strategic Education’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
GP Strategies has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Strategic Education has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.
Insider and Institutional Ownership
89.5% of GP Strategies shares are owned by institutional investors. Comparatively, 97.1% of Strategic Education shares are owned by institutional investors. 25.7% of GP Strategies shares are owned by company insiders. Comparatively, 3.6% of Strategic 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.
Strategic Education pays an annual dividend of $2.00 per share and has a dividend yield of 1.1%. GP Strategies does not pay a dividend. Strategic Education pays out 42.1% of its earnings in the form of a dividend.
This is a breakdown of current ratings and target prices for GP Strategies and Strategic Education, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
GP Strategies presently has a consensus target price of $19.50, suggesting a potential upside of 38.40%. Strategic Education has a consensus target price of $174.00, suggesting a potential downside of 2.41%. Given GP Strategies’ higher probable upside, equities analysts plainly believe GP Strategies is more favorable than Strategic Education.
Valuation & Earnings
This table compares GP Strategies and Strategic Education’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|GP Strategies||$515.16 million||0.46||$9.84 million||$0.90||15.66|
|Strategic Education||$634.18 million||6.17||-$15.67 million||$4.75||37.54|
GP Strategies has higher earnings, but lower revenue than Strategic Education. GP Strategies is trading at a lower price-to-earnings ratio than Strategic Education, indicating that it is currently the more affordable of the two stocks.
Strategic Education beats GP Strategies on 10 of the 15 factors compared between the two stocks.
GP Strategies Company Profile
GP Strategies Corporation provides performance improvement and learning solutions worldwide. It operates through four segments: Learning Solutions, Professional & Technical Services, Sandy Training & Marketing, and Performance Readiness Solutions. The Learning Solutions segment delivers training, curriculum design and development, digital learning, system hosting, managed learning, and consulting services to electronics and semiconductors, healthcare, software, financial services, and other industries, as well as government agencies; and provides apprenticeship and vocational skills training services. The Professional & Technical Services segment offers training, consulting, engineering, and technical services, including lean consulting, emergency preparedness, safety and regulatory compliance, chemical demilitarization, and environmental services to the manufacturing, steel, pharmaceutical, energy, and petrochemical industries, as well as federal and state government agencies, and government contractors. The Sandy Training & Marketing segment provides custom product sales training to customer sales forces; and technical training services to automotive manufacturers and customers in other industries. The Performance Readiness Solutions segment offers performance and technology consulting services, such as platform adoption, end-user training, change and knowledge management, customer product training outsourcing, training content development, and sales enablement solutions; and organization performance solutions comprising leadership development training, strategy-through-implementation consulting services, and employee engagement tools and services to manufacturing, aerospace, healthcare, life sciences, consumer products, financial, telecommunications, and higher education industries, as well as government agencies. GP Strategies Corporation was founded in 1959 and is headquartered in Columbia, Maryland.
Strategic Education Company Profile
Strategic Education, Inc., through its subsidiaries, provides a range of post-secondary education and non-degree programs in the United States. The company operates through three segments: Strayer University, Capella University, and Non-Degree Programs. It operates Strayer University that provides undergraduate and graduate degree programs in business administration, accounting, information technology, education, health services administration, public administration, and criminal justice for working adult students through its 74 physical campuses located in the eastern United States, as well as through online; and an executive MBA online through its Jack Welch Management Institute. The company also operates Capella University, an online post-secondary education company, which offers various bachelor's, master's, and doctoral degree programs in public service leadership, nursing and health sciences, psychology, business and technology, counseling and human services, and education primarily for working adults. In addition, it is involved in the operation of a software development school that provides Web Development, iOS development, and UX design programs in person at classrooms in Provo and Salt Lake City, Utah; Dallas, Texas; and Phoenix, Arizona, as well as through online. Further, the company operates a software engineering school for women, which offers software development programs in person through classrooms in the San Francisco Bay area; and provides non-degree Web and application software development courses, as well as self-paced online learning courses. It offers its non-degree programs primarily for workers and their employers. Strategic Education, Inc. was founded in 1892 and is headquartered in Herndon, Virginia.
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