Frontdoor (NASDAQ:FTDR – Get Free Report) and Coursera (NYSE:COUR – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.
Institutional & Insider Ownership
89.5% of Coursera shares are held by institutional investors. 1.6% of Frontdoor shares are held by insiders. Comparatively, 16.3% of Coursera shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Frontdoor and Coursera”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Frontdoor | $2.09 billion | 3.12 | $255.00 million | $4.00 | 24.16 |
| Coursera | $757.50 million | 1.17 | -$51.00 million | ($0.72) | -4.87 |
Frontdoor has higher revenue and earnings than Coursera. Coursera is trading at a lower price-to-earnings ratio than Frontdoor, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and target prices for Frontdoor and Coursera, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Frontdoor | 0 | 2 | 5 | 0 | 2.71 |
| Coursera | 1 | 6 | 5 | 1 | 2.46 |
Frontdoor presently has a consensus target price of $99.80, indicating a potential upside of 3.27%. Coursera has a consensus target price of $6.36, indicating a potential upside of 81.56%. Given Coursera’s higher possible upside, analysts plainly believe Coursera is more favorable than Frontdoor.
Profitability
This table compares Frontdoor and Coursera’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Frontdoor | 12.96% | 124.74% | 15.33% |
| Coursera | -14.35% | 3.23% | 1.96% |
Risk & Volatility
Frontdoor has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, Coursera has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
Summary
Frontdoor beats Coursera on 10 of the 14 factors compared between the two stocks.
About Frontdoor
Frontdoor, Inc. provides home service plans and repair solutions in the United States. Its plans help homeowners manage the cost of repairing or replacing covered home systems and appliances, such as heating and cooling equipment, plumbing, and kitchen appliances. The company serves customers through brands including American Home Shield, HSA Home Warranty, and OneGuard Home Warranties. It also connects customers with a network of independent service contractors and offers digital tools and support to help arrange home repairs.
About Coursera
Coursera is an online learning platform founded in 2012 by Stanford University professors Andrew Ng and Daphne Koller. It works with universities and companies to offer digital learning programs to individuals, businesses, governments and educational institutions around the world. Its offerings include individual courses, multi-course Specializations, professional certificates, guided projects and online degree programs. The platform also provides learning and workforce-development services for organizations through Coursera for Business and other institutional offerings.
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