Financial Contrast: Education Management (EDMC) versus Grand Canyon Education (LOPE)

Education Management (OTCMKTS: EDMC) and Grand Canyon Education (NASDAQ:LOPE) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Analyst Ratings

This is a summary of current ratings and recommmendations for Education Management and Grand Canyon Education, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Education Management 0 0 0 0 N/A
Grand Canyon Education 0 0 4 0 3.00

Grand Canyon Education has a consensus target price of $107.75, suggesting a potential downside of 2.15%. Given Grand Canyon Education’s higher probable upside, analysts plainly believe Grand Canyon Education is more favorable than Education Management.

Profitability

This table compares Education Management and Grand Canyon Education’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Education Management N/A N/A N/A
Grand Canyon Education 22.07% 22.00% 16.33%

Valuation & Earnings

This table compares Education Management and Grand Canyon Education’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Education Management N/A N/A N/A N/A N/A
Grand Canyon Education $974.13 million 5.45 $203.31 million $3.96 27.81

Grand Canyon Education has higher revenue and earnings than Education Management.

Risk & Volatility

Education Management has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500. Comparatively, Grand Canyon Education has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of Education Management shares are held by institutional investors. Comparatively, 95.7% of Grand Canyon Education shares are held by institutional investors. 81.2% of Education Management shares are held by insiders. Comparatively, 2.4% of Grand Canyon Education shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Grand Canyon Education beats Education Management on 8 of the 9 factors compared between the two stocks.

Education Management Company Profile

Education Management Corporation provides post-secondary education in North America. It offers academic programs to students through campus-based and online instruction to earn undergraduate and graduate degrees, and various specialized non-degree diplomas in a range of disciplines comprising business, culinary, design, education, fashion, health sciences, information technology, legal, media arts, and psychology and behavioral sciences. The company was founded in 1962 and is headquartered in Pittsburgh, Pennsylvania.

Grand Canyon Education Company Profile

Grand Canyon Education, Inc., together with its subsidiaries, provides education services in the United States and Canada. The company operates Grand Canyon University that offers approximately 225 graduate and undergraduate degree programs and certificates across 9 colleges online and on ground through campus in Phoenix, Arizona; leased facilities; and facilities owned by third party employers. As of December 31, 2017, it had approximately 90,300 students enrolled in its programs. The company was founded in 1949 and is based in Phoenix, Arizona.

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