Educational Development (EDUC) vs. Its Rivals Head to Head Review

Educational Development (NASDAQ:EDUC) is one of 259 publicly-traded companies in the “Media” industry, but how does it weigh in compared to its rivals? We will compare Educational Development to similar companies based on the strength of its analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Educational Development and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Educational Development	1	0	0	0	1.00
Educational Development Competitors	2242	6858	10817	475	2.47

As a group, “Media” companies have a potential upside of 22.05%. Given Educational Development’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Educational Development has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

19.6% of Educational Development shares are owned by institutional investors. Comparatively, 38.8% of shares of all “Media” companies are owned by institutional investors. 11.9% of Educational Development shares are owned by insiders. Comparatively, 17.6% of shares of all “Media” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Educational Development has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Educational Development’s rivals have a beta of 0.96, suggesting that their average share price is 4% less volatile than the S&P 500.

Valuation & Earnings

This table compares Educational Development and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Educational Development	$20.56 million	$2.33 million	5.89
Educational Development Competitors	$3.20 billion	-$7.90 million	17.87

Educational Development’s rivals have higher revenue, but lower earnings than Educational Development. Educational Development is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Educational Development and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Educational Development	9.75%	-18.23%	-12.73%
Educational Development Competitors	-20.08%	-48.65%	-5.12%

Dividends

Educational Development pays an annual dividend of $0.10 per share and has a dividend yield of 7.4%. Educational Development pays out 43.5% of its earnings in the form of a dividend. As a group, “Media” companies pay a dividend yield of 5.3% and pay out 128.5% of their earnings in the form of a dividend. Educational Development is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Summary

Educational Development rivals beat Educational Development on 9 of the 15 factors compared.

About Educational Development

Educational Development Corporation, a publishing company, operates as a publisher of educational children's books in the United States. It operates through two segments, PaperPie and Publishing. The company offers various books, including touchy-feely board books, activity books and flashcards, adventure and search books, art books, sticker books, and foreign language books, as well as internet-linked books comprising science and math titles, and chapter books and novels. It markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers, and its internal tele-sales group; and through a network of independent sales consultants through internet sales, direct sales, home shows, and book fairs. Educational Development Corporation was incorporated in 1965 and is headquartered in Tulsa, Oklahoma.