Capella Education (NASDAQ: CPLA) is one of 20 publicly-traded companies in the “General Education Services” industry, but how does it contrast to its competitors? We will compare Capella Education to related businesses based on the strength of its risk, dividends, earnings, profitability, analyst recommendations, valuation and institutional ownership.

Insider & Institutional Ownership

91.5% of Capella Education shares are held by institutional investors. Comparatively, 66.6% of shares of all “General Education Services” companies are held by institutional investors. 3.6% of Capella Education shares are held by insiders. Comparatively, 13.9% of shares of all “General Education Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Capella Education pays an annual dividend of $1.64 per share and has a dividend yield of 2.3%. Capella Education pays out 42.4% of its earnings in the form of a dividend. As a group, “General Education Services” companies pay a dividend yield of 1.5% and pay out 34.6% of their earnings in the form of a dividend.

Volatility and Risk

Capella Education has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, Capella Education’s competitors have a beta of 1.14, meaning that their average share price is 14% more volatile than the S&P 500.

Valuation and Earnings

This table compares Capella Education and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Capella Education $438.59 million $71.59 million 18.10
Capella Education Competitors $909.14 million $144.34 million 4.53

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

Profitability

This table compares Capella Education and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Capella Education 10.49% 20.23% 15.34%
Capella Education Competitors 0.80% 0.13% 2.03%

Analyst Recommendations

This is a breakdown of current ratings for Capella Education and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capella Education 0 1 2 0 2.67
Capella Education Competitors 61 438 454 2 2.42

Capella Education presently has a consensus target price of $87.00, suggesting a potential upside of 24.20%. As a group, “General Education Services” companies have a potential downside of 2.34%. Given Capella Education’s stronger consensus rating and higher possible upside, analysts clearly believe Capella Education is more favorable than its competitors.

Summary

Capella Education beats its competitors on 9 of the 15 factors compared.

About Capella Education

Capella Education Company is an education services company. The Company provides direct path between learning and employment through its online postsecondary education offerings and through programs to develop job-ready skills for demand markets. The company’s segments include post-secondary segment and job-ready skills segment. The post-secondary segment has Capella University (the University) and Sophia Learning, LLC (Sophia). The job-ready skills segment has Capella Learning Solutions, LLC (CLS), Hackbright Academy, Inc. (Hackbright) and DevMountain, LLC (DevMountain). The Company’s program offers six markets, which include public service leadership; nursing and health sciences; social and behavioral sciences; business and technology; education and undergraduate studies. Capella University offers over 1,940 online courses and approximately 50 academic programs with approximately 150 specializations to approximately 38,000 learners.

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