Universal Technical Institute (UTI) versus American Public Education (APEI) Financial Survey

Universal Technical Institute (NYSE: UTI) and American Public Education (NASDAQ:APEI) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Universal Technical Institute and American Public Education’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Universal Technical Institute -4.58% -12.34% -6.17%
American Public Education 7.10% 7.90% 6.71%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Universal Technical Institute and American Public Education, 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
American Public Education 0 2 1 0 2.33

Universal Technical Institute presently has a consensus target price of $6.00, suggesting a potential upside of 92.93%. American Public Education has a consensus target price of $39.33, suggesting a potential downside of 11.81%. Given Universal Technical Institute’s higher possible upside, research analysts plainly believe Universal Technical Institute is more favorable than American Public Education.

Valuation & Earnings

This table compares Universal Technical Institute and American Public Education’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Universal Technical Institute $324.26 million 0.24 -$8.12 million ($0.51) -6.10
American Public Education $299.25 million 2.44 $21.12 million $1.29 34.57

American Public Education has lower revenue, but higher earnings than Universal Technical Institute. Universal Technical Institute is trading at a lower price-to-earnings ratio than American Public Education, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

63.3% of Universal Technical Institute shares are owned by institutional investors. Comparatively, 94.6% of American Public Education shares are owned by institutional investors. 28.4% of Universal Technical Institute shares are owned by company insiders. Comparatively, 3.2% of American Public Education shares are owned 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.

Volatility and Risk

Universal Technical Institute has a beta of 3.17, suggesting that its stock price is 217% more volatile than the S&P 500. Comparatively, American Public Education has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Summary

American Public Education beats Universal Technical Institute on 10 of the 14 factors compared between the two stocks.

Universal Technical Institute Company Profile

Universal Technical Institute, Inc. provides postsecondary education for students seeking careers as professional automotive, diesel, collision repair, motorcycle, and marine technicians in the United States. The company offers undergraduate degree and diploma programs, and specialized technical education programs through its 12 campuses under various brands, such as Universal Technical Institute, Motorcycle Mechanics Institute and Marine Mechanics Institute, and NASCAR Technical Institute. It also provides manufacturer specific advanced training programs, including student paid electives at its campuses; and manufacturer or dealer sponsored training at various campuses and dedicated training centers, as well as offers undergraduate diploma programs for welding and computer numerical control machining. The company was founded in 1965 and is headquartered in Scottsdale, Arizona.

American Public Education Company Profile

American Public Education, Inc., together with its subsidiaries, provides online and campus-based postsecondary education. The company operates through two segments, American Public Education and Hondros College of Nursing. It offers 108 degree programs and 109 certificate programs in various fields of study, including business administration, health science, technology, criminal justice, education, and liberal arts, as well as national security, military studies, intelligence, and homeland security. The company also provides diploma in practical nursing and an associate degree in nursing; and an online registered nurse to Bachelor of Science in nursing completion program. American Public Education, Inc. was founded in 1991 and is headquartered in Charles Town, West Virginia.

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