Capella Education (NASDAQ: CPLA) and Adtalem Global Education (NASDAQ:ATGE) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.
This table compares Capella Education and Adtalem Global Education’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Adtalem Global Education||9.76%||10.35%||7.63%|
This is a summary of recent recommendations and price targets for Capella Education and Adtalem Global Education, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Adtalem Global Education||0||1||0||0||2.00|
Capella Education currently has a consensus price target of $91.25, indicating a potential upside of 7.10%. Adtalem Global Education has a consensus price target of $38.00, indicating a potential upside of 1.67%. Given Capella Education’s stronger consensus rating and higher possible upside, analysts clearly believe Capella Education is more favorable than Adtalem Global Education.
Capella Education pays an annual dividend of $1.64 per share and has a dividend yield of 1.9%. Adtalem Global Education does not pay a dividend. Capella Education pays out 46.3% of its earnings in the form of a dividend.
Risk and Volatility
Capella Education has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Adtalem Global Education has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.
Insider & Institutional Ownership
92.2% of Capella Education shares are owned by institutional investors. 3.6% of Capella Education shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Capella Education and Adtalem Global Education’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Capella Education||$429.39 million||2.31||$42.96 million||$3.54||24.07|
|Adtalem Global Education||N/A||N/A||N/A||$1.72||21.73|
Capella Education has higher revenue and earnings than Adtalem Global Education. Adtalem Global Education is trading at a lower price-to-earnings ratio than Capella Education, indicating that it is currently the more affordable of the two stocks.
Capella Education beats Adtalem Global Education on 10 of the 13 factors compared between the two stocks.
Capella Education Company Profile
Capella Education Company is an education services company. The Company provides direct path between learning and employment through its online postsecondary education offerings and through programs to develop job-ready skills for demand markets. The company’s segments include post-secondary segment and job-ready skills segment. The post-secondary segment has Capella University (the University) and Sophia Learning, LLC (Sophia). The job-ready skills segment has Capella Learning Solutions, LLC (CLS), Hackbright Academy, Inc. (Hackbright) and DevMountain, LLC (DevMountain). The Company’s program offers six markets, which include public service leadership; nursing and health sciences; social and behavioral sciences; business and technology; education and undergraduate studies. Capella University offers over 1,940 online courses and approximately 50 academic programs with approximately 150 specializations to approximately 38,000 learners.
Adtalem Global Education Company Profile
Adtalem Global Education Inc., formerly DeVry Education Group Inc. (DeVry Group) is a global provider of educational services. DeVry Group’s focuses on empowering its students to achieve their educational and career goals. DeVry Group’s institutions offer a range of programs in healthcare, technology, business, accounting, finance and law. The Company operates in three segments: Medical and Healthcare; International and Professional Education, and Business, Technology and Management. Medical and Healthcare includes DeVry Medical International, Chamberlain College of Nursing (Chamberlain) and Carrington College. International and Professional Education consists of DeVry Brasil and Becker Professional Education. Business, Technology and Management consists of DeVry University. As of June 30, 2016, DMI operated three institutions: American University of the Caribbean School of Medicine (AUC), Ross University School of Medicine (RUSM) and Ross University School of Veterinary Medicine.
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