Universal Technical Institute (UTI) versus The Competition Critical Survey

Universal Technical Institute (NYSE:UTI) is one of 166 publicly-traded companies in the “Diversified Consumer Services” industry, but how does it compare to its rivals? We will compare Universal Technical Institute to related businesses based on the strength of its valuation, analyst recommendations, institutional ownership, earnings, profitability, dividends and risk.

Analyst Ratings

This is a summary of recent ratings and target prices for Universal Technical Institute and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Technical Institute	0	3	4	0	2.57
Universal Technical Institute Competitors	1436	3435	5284	197	2.41

Universal Technical Institute presently has a consensus target price of $42.33, indicating a potential upside of 85.43%. As a group, “Diversified Consumer Services” companies have a potential upside of 57.67%. Given Universal Technical Institute’s stronger consensus rating and higher probable upside, analysts clearly believe Universal Technical Institute is more favorable than its rivals.

Institutional & Insider Ownership

75.7% of Universal Technical Institute shares are owned by institutional investors. Comparatively, 48.4% of shares of all “Diversified Consumer Services” companies are owned by institutional investors. 9.8% of Universal Technical Institute shares are owned by insiders. Comparatively, 19.8% of shares of all “Diversified Consumer Services” companies are owned 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.

Risk and Volatility

Universal Technical Institute has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Universal Technical Institute’s rivals have a beta of 0.50, indicating that their average stock price is 50% less volatile than the S&P 500.

Profitability

This table compares Universal Technical Institute and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Technical Institute	3.88%	10.18%	4.02%
Universal Technical Institute Competitors	-3.43%	-28.34%	2.46%

Earnings & Valuation

This table compares Universal Technical Institute and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Universal Technical Institute	$835.62 million	$63.02 million	36.82
Universal Technical Institute Competitors	$3.24 billion	$219.82 million	11.73

Universal Technical Institute’s rivals have higher revenue and earnings than Universal Technical Institute. Universal Technical Institute is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Universal Technical Institute beats its rivals on 9 of the 13 factors compared.

About Universal Technical Institute

Universal Technical Institute, Inc. provides transportation, skilled trades, and healthcare education programs in the United States. The company operates in two segments, UTI and Concorde. It offers certificate, diploma, or degree programs under various brands, such as Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology. The company 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. It serves students, partners, and communities by providing education and support services in various fields. Universal Technical Institute, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.