Reviewing Professional Diversity Network (IPDN) and 2U (TWOU)

Professional Diversity Network (NASDAQ: IPDN) and 2U (NASDAQ:TWOU) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Valuation & Earnings

This table compares Professional Diversity Network and 2U’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Professional Diversity Network $26.23 million 0.57 -$4.10 million ($4.71) -0.81
2U $205.86 million 19.31 -$20.68 million ($0.67) -113.64

Professional Diversity Network has higher earnings, but lower revenue than 2U. 2U is trading at a lower price-to-earnings ratio than Professional Diversity Network, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Professional Diversity Network and 2U’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Professional Diversity Network -86.95% -37.27% -25.12%
2U -12.49% -13.02% -9.97%

Institutional & Insider Ownership

4.3% of Professional Diversity Network shares are owned by institutional investors. 9.2% of Professional Diversity Network shares are owned by company insiders. Comparatively, 8.4% of 2U shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Professional Diversity Network has a beta of 2.98, indicating that its stock price is 198% more volatile than the S&P 500. Comparatively, 2U has a beta of -0.05, indicating that its stock price is 105% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Professional Diversity Network and 2U, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Professional Diversity Network 0 0 0 0 N/A
2U 0 0 10 0 3.00

2U has a consensus price target of $72.40, indicating a potential downside of 4.91%. Given 2U’s higher probable upside, analysts clearly believe 2U is more favorable than Professional Diversity Network.

Summary

2U beats Professional Diversity Network on 8 of the 13 factors compared between the two stocks.

Professional Diversity Network Company Profile

Professional Diversity Network, Inc. is an operator of professional networks with a focus on diversity. The Company serves various communities, including Women, Hispanic-Americans, African-Americans, Asian-Americans, Disabled, Military Professionals, and Lesbian, Gay, Bisexual and Transgender (LGBT). The Company’s segments include Professional Diversity Network (PDN Network), which includes online professional networking communities with career resources for the needs of various diverse cultural groups; National Association of Professional Women (NAPW Network), a women-only professional networking organization, and Noble Voice operations (Noble Voice), a career consultation and lead generation service. The Noble Voice call centers qualify callers for real-time job placement. The PDN Network consists of various online professional networking communities dedicated to serving diverse professionals in the United States and employers seeking to hire diverse talent.

2U Company Profile

2U, Inc. is a provider of an integrated solution consisting of cloud-based software-as-a-service (SaaS) combined with technology-enabled services (together, the Platform) that allows colleges and universities to deliver online degree programs. The Company’s SaaS technology consists of a learning environment (Online Campus), which acts as the hub for all student and faculty academic and social interaction, and a suite of integrated applications, which the Company uses to launch, operate and support the Company’s clients’ programs. The Company also provides a suite of technology-enabled services optimized with data analysis and machine learning techniques that support the complete lifecycle of a higher education program, including attracting students, advising students through the admissions application process, providing technical, success coaching and other support, facilitating accessibility to individuals with disabilities, and facilitating in-program field placements.

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