Universal Technical Institute (NYSE: UTI) and China Online Education Group (NYSE:COE) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
This is a summary of recent ratings and recommmendations for Universal Technical Institute and China Online Education Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Universal Technical Institute||0||1||0||0||2.00|
|China Online Education Group||0||0||0||0||N/A|
Universal Technical Institute currently has a consensus target price of $6.00, suggesting a potential upside of 150.00%. Given Universal Technical Institute’s higher probable upside, analysts plainly believe Universal Technical Institute is more favorable than China Online Education Group.
This table compares Universal Technical Institute and China Online Education Group’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%|
|China Online Education Group||-80.07%||N/A||-71.36%|
Volatility and Risk
Universal Technical Institute has a beta of 3.49, indicating that its share price is 249% more volatile than the S&P 500. Comparatively, China Online Education Group has a beta of -1.24, indicating that its share price is 224% less volatile than the S&P 500.
Insider and Institutional Ownership
57.1% of Universal Technical Institute shares are owned by institutional investors. Comparatively, 27.1% of China Online Education Group shares are owned by institutional investors. 13.3% of Universal Technical Institute shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Universal Technical Institute and China Online Education Group’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||0.19||-$8.12 million||($0.53)||-4.53|
|China Online Education Group||$60.24 million||4.16||-$74.14 million||($4.26)||-2.93|
Universal Technical Institute has higher revenue and earnings than China Online Education Group. Universal Technical Institute is trading at a lower price-to-earnings ratio than China Online Education Group, indicating that it is currently the more affordable of the two stocks.
Universal Technical Institute beats China Online Education Group on 9 of the 12 factors compared between the two stocks.
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.
China Online Education Group Company Profile
China Online Education Group is engaged in providing online English language education services to students in the People’s Republic of China (the PRC). The Company operates an online education platform that provides online tutoring programs to students through the Internet. Its platform analyzes teachers’ teaching aptitudes, feedback and rating from students, as well as background, and recommends suitable teachers to students according to their respective characteristics and learning objectives. The Company develops and tailors its curriculum to its interactive lesson format. The Company offers various courses, which include Classic English and Classic English Junior that are focused on the development of English communication skills. The Company also offers various specialty courses that are focused at situation-based English education and test preparation needs, such as Business English and International English Language Testing System (IELTS) Speaking.
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