Universal Technical Institute (NYSE: UTI) and Laureate Education (NASDAQ:LAUR) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Profitability

This table compares Universal Technical Institute and Laureate Education’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Universal Technical Institute -4.87% -6.42% -3.06%
Laureate Education N/A N/A N/A

Institutional & Insider Ownership

58.8% of Universal Technical Institute shares are owned by institutional investors. Comparatively, 20.8% of Laureate Education shares are owned by institutional investors. 13.3% of Universal Technical Institute shares are owned by company insiders. Comparatively, 13.1% of Laureate Education shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Universal Technical Institute and Laureate Education’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Universal Technical Institute $329.85 million 0.26 $14.20 million ($0.87) -4.03
Laureate Education $4.24 billion 0.58 $648.36 million N/A N/A

Laureate Education has higher revenue and earnings than Universal Technical Institute.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Universal Technical Institute and Laureate Education, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal Technical Institute 0 0 0 0 N/A
Laureate Education 0 3 10 0 2.77

Laureate Education has a consensus target price of $17.28, indicating a potential upside of 19.14%. Given Laureate Education’s higher probable upside, analysts clearly believe Laureate Education is more favorable than Universal Technical Institute.

Summary

Laureate Education beats Universal Technical Institute on 8 of the 10 factors compared between the two stocks.

About Universal Technical Institute

Universal Technical Institute, Inc. is a provider of postsecondary education for students seeking careers as professional automotive, diesel, collision repair, motorcycle and marine technicians as measured by total average undergraduate full-time enrollment and graduates. The Company offers undergraduate degree or diploma programs at approximately 12 campuses across the United States under the banner of various brands, including Universal Technical Institute (UTI), Motorcycle Mechanics Institute and Marine Mechanics Institute (collectively, MMI) and NASCAR Technical Institute (NASCAR Tech). The Company also offers manufacturer specific advanced training (MSAT) programs, including student-paid electives, at its campuses and manufacturer or dealer sponsored training at certain campuses and dedicated training centers. UTI offers automotive, diesel and industrial, and collision repair and refinishing programs.

About Laureate Education

Laureate Education, Inc. provides higher education programs and services to students through an international network of licensed universities and higher education institutions (institutions). The Company’s programs are provided through institutions that are campus-based and Internet-based, or through electronically distributed educational programs (online). It offers its educational services through six segments: Brazil; Mexico; Andean and Iberian; Central America and United States (U.S.) Campuses; Online and Partnerships; and Europe, Middle East, Africa and Asia Pacific (EMEAA). Its institutions also offer an education that emphasizes professional-oriented fields of study with undergraduate and graduate degrees in a wide range of disciplines. As of June 30, 2017, the Company’s global network of 69 institutions comprised 57 institutions it owned or controlled, and an additional 12 institutions that it managed or with which it had other relationships.

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