Critical Comparison: Nord Anglia Education (NORD) & American Public Education (APEI)
Nord Anglia Education (NYSE: NORD) and American Public Education (NASDAQ:APEI) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.
Volatility and Risk
Nord Anglia Education has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, American Public Education has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.
Institutional and Insider Ownership
30.8% of Nord Anglia Education shares are owned by institutional investors. Comparatively, 92.0% of American Public Education shares are owned by institutional investors. 2.7% of Nord Anglia Education shares are owned by company insiders. Comparatively, 3.6% of American Public Education shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a breakdown of current ratings and price targets for Nord Anglia Education and American Public Education, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nord Anglia Education||1||5||2||0||2.13|
|American Public Education||0||1||0||0||2.00|
Nord Anglia Education presently has a consensus price target of $30.50, suggesting a potential downside of 6.15%. American Public Education has a consensus price target of $19.00, suggesting a potential upside of 2.98%. Given American Public Education’s higher possible upside, analysts clearly believe American Public Education is more favorable than Nord Anglia Education.
Earnings & Valuation
This table compares Nord Anglia Education and American Public Education’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Nord Anglia Education||$907.80 million||3.73||$173.60 million||$0.57||57.02|
|American Public Education||$300.31 million||1.00||$56.56 million||$0.95||19.42|
Nord Anglia Education has higher revenue and earnings than American Public Education. American Public Education is trading at a lower price-to-earnings ratio than Nord Anglia Education, indicating that it is currently the more affordable of the two stocks.
This table compares Nord Anglia Education and American Public Education’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nord Anglia Education||6.71%||22.11%||3.06%|
|American Public Education||5.18%||7.87%||6.55%|
Nord Anglia Education beats American Public Education on 8 of the 14 factors compared between the two stocks.
About Nord Anglia Education
Nord Anglia Education, Inc. is an operator of international schools. As of August 31, 2016, the Company taught over 37,000 students, from kindergarten through the end of secondary school (K-12), at its 43 schools in China, Europe, the Middle East, South East Asia and North America. The Company’s segments include China, Europe, Middle East (ME), Southeast Asia (SEA), North America and Other. The China segment includes its activities in the People’s Republic of China and the Hong Kong Special Administrative Region. The Europe segment includes the Company’s activities in Switzerland, Slovakia, Hungary, the Czech Republic, Spain and Poland. The ME segment includes the Company’s activities in the United Arab Emirates and Qatar. The SEA segment includes the Company’s activities in Thailand, Singapore, Cambodia and Vietnam. The North America segment includes the Company’s activities in the United States and Mexico. The Other segment includes the Learning Services division.
About American Public Education
American Public Education, Inc. provides online and on-campus postsecondary education. The Company provides postsecondary education through its subsidiary institutions, American Public University System, Inc. (APUS) and Hondros College of Nursing (HCON). It operates through two segments: American Public Education Segment, which consists of the operational activities of APUS, other corporate activities, and minority investments, and Hondros College of Nursing Segment, which consists of the operational activities of HCON. APUS provides online postsecondary education to approximately 88,700 adult learners serving the needs of the military and public safety communities as of December 31, 2016. As of December 31, 2016, HCON provided nursing education to approximately 1,300 students across five campuses in the State of Ohio, as well as online. It offers a Diploma in Practical Nursing and an Associate Degree in Nursing. As of December 31, 2016, the Company had approximately 90,000 students.
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