WW International (NASDAQ:WW) vs. Perdoceo Education (NASDAQ:PRDO) Head-To-Head Review

Perdoceo Education (NASDAQ:PRDO) and WW International (NASDAQ:WW) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Profitability

This table compares Perdoceo Education and WW International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Perdoceo Education	20.62%	18.93%	14.66%
WW International	-56.84%	N/A	-0.32%

Institutional & Insider Ownership

93.5% of Perdoceo Education shares are owned by institutional investors. Comparatively, 86.2% of WW International shares are owned by institutional investors. 1.5% of Perdoceo Education shares are owned by insiders. Comparatively, 0.4% of WW International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Perdoceo Education has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, WW International has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500.

Valuation & Earnings

This table compares Perdoceo Education and WW International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perdoceo Education	$846.10 million	2.22	$159.91 million	$2.74	10.95
WW International	$710.64 million	0.17	-$112.25 million	($10.13)	-1.20

Perdoceo Education has higher revenue and earnings than WW International. WW International is trading at a lower price-to-earnings ratio than Perdoceo Education, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Perdoceo Education and WW International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perdoceo Education	0	1	2	0	2.67
WW International	1	1	1	0	2.00

Perdoceo Education currently has a consensus price target of $44.00, suggesting a potential upside of 46.72%. WW International has a consensus price target of $25.00, suggesting a potential upside of 106.10%. Given WW International’s higher probable upside, analysts plainly believe WW International is more favorable than Perdoceo Education.

Summary

Perdoceo Education beats WW International on 12 of the 14 factors compared between the two stocks.

About Perdoceo Education

Perdoceo Education Corporation provides postsecondary education through online, campus-based, and blended learning programs in the United States. It operates in two segments, Colorado Technical University and The American InterContinental University System. The Colorado Technical University segment offers academic programs, such as business and management, nursing, healthcare management, computer science, engineering, information systems and technology, project management, cybersecurity, and criminal justice. The American InterContinental University System segment provides academic programs, including business studies, information technologies, education, and health sciences. The company also offers non-degree and professional development programs. In addition, it operates intellipath, a learning platform used to educate students; and a mobile application and two-way messaging platform. The company was formerly known as Career Education Corporation and changed its name to Perdoceo Education Corporation in January 2020. Perdoceo Education Corporation was incorporated in 1994 and is headquartered in Schaumburg, Illinois.

About WW International

WW International, Inc. provides weight management products and services worldwide. It offers a range of nutritional, activity, behavioral, and lifestyle tools and approaches products and services. The company also provides various digital subscription products to wellness and weight management business, which provide interactive and personalized resources that allow users to follow its weight management program through its app and web-based platform; and allows members to inspire and support each other by sharing their experiences with other people on weight health journeys. In addition, it licenses its trademarks and other intellectual property in food, beverages, and other relevant consumer products and services, as well as provides publishing services. The company was formerly known as Weight Watchers International, Inc. and changed its name to WW International, Inc. in September 2019. WW International, Inc. was founded in 1961 and is headquartered in New York, New York.