Critical Analysis: Grand Canyon Education (LOPE) versus Apollo Education Group (APOL)
Grand Canyon Education (NASDAQ: LOPE) and Apollo Education Group (NASDAQ:APOL) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.
Risk and Volatility
Grand Canyon Education has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Apollo Education Group has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.
Earnings & Valuation
This table compares Grand Canyon Education and Apollo Education Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Grand Canyon Education||$921.61 million||4.19||$310.30 million||$3.62||22.16|
|Apollo Education Group||N/A||N/A||N/A||($0.19)||-52.61|
Grand Canyon Education has higher revenue and earnings than Apollo Education Group. Apollo Education Group is trading at a lower price-to-earnings ratio than Grand Canyon Education, indicating that it is currently the more affordable of the two stocks.
This table compares Grand Canyon Education and Apollo Education Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Grand Canyon Education||18.77%||21.77%||15.47%|
|Apollo Education Group||0.66%||1.53%||0.65%|
This is a breakdown of current ratings for Grand Canyon Education and Apollo Education Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Grand Canyon Education||0||0||4||0||3.00|
|Apollo Education Group||0||0||1||0||3.00|
Grand Canyon Education presently has a consensus target price of $74.67, indicating a potential downside of 6.92%. Given Grand Canyon Education’s higher probable upside, equities analysts clearly believe Grand Canyon Education is more favorable than Apollo Education Group.
Insider & Institutional Ownership
96.2% of Grand Canyon Education shares are held by institutional investors. Comparatively, 73.3% of Apollo Education Group shares are held by institutional investors. 3.0% of Grand Canyon Education shares are held by insiders. Comparatively, 4.8% of Apollo Education Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Grand Canyon Education beats Apollo Education Group on 9 of the 10 factors compared between the two stocks.
About Grand Canyon Education
Grand Canyon Education, Inc. is engaged in the provision of postsecondary education. The Company is a regionally accredited university. The Company offers the degrees, including Doctor of Education, Doctor of Business Administration, Doctor of Nursing Practice, Doctor of Philosophy, Education Specialist, Master of Divinity, Master of Arts, Master of Education, Master of Business Administration and Master of Public Administration, Master of Public Health, Master of Science, Bachelor of Arts, Bachelor of Science, and a range of programs for its degrees. It also offers certificate programs, which consist of a series of courses focused on a particular area of study for both the post-baccalaureate and post-graduate students. The Company offers its ground-based programs to students through three 15-week semesters in a calendar year and to online students in courses that generally range from 5 to 16 weeks throughout the calendar year.
About Apollo Education Group
Apollo Education Group, Inc. is a United States-based education provider. The Company offers undergraduate, graduate, certificate and non-degree educational programs and services, online and on-campus, to working adults in the United States and abroad. Its segments include University of Phoenix, Apollo Global and Other. The University of Phoenix segment offers undergraduate and graduate degrees through its colleges and schools in a range of program areas, as well as various non-degree programs. Primarily, the University of Phoenix’s students attend classes online. It also offers educational programs and services at ground locations throughout the United States. The Apollo Global segment includes its institutions based outside the United States and its corporate operations. The Other segment includes College for Financial Planning Institutes Corporation; Western International University, Inc.; TIY Academy, LLC; Apollo Professional Development, and Apollo corporate activities.
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