Bridgepoint Education (NYSE: BPI) and Nord Anglia Education (NYSE:NORD) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Insider & Institutional Ownership

92.8% of Bridgepoint Education shares are held by institutional investors. Comparatively, 30.8% of Nord Anglia Education shares are held by institutional investors. 41.5% of Bridgepoint Education shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Bridgepoint Education and Nord Anglia Education, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bridgepoint Education 0 1 0 0 2.00
Nord Anglia Education 1 5 2 0 2.13

Bridgepoint Education presently has a consensus target price of $14.00, indicating a potential upside of 57.48%. Nord Anglia Education has a consensus target price of $30.50, indicating a potential downside of 6.36%. Given Bridgepoint Education’s higher possible upside, equities analysts clearly believe Bridgepoint Education is more favorable than Nord Anglia Education.

Profitability

This table compares Bridgepoint Education and Nord Anglia Education’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bridgepoint Education -1.39% 9.16% 5.13%
Nord Anglia Education 6.71% 22.11% 3.06%

Volatility and Risk

Bridgepoint Education has a beta of 2.17, indicating that its stock price is 117% more volatile than the S&P 500. Comparatively, Nord Anglia Education has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Valuation & Earnings

This table compares Bridgepoint Education and Nord Anglia Education’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bridgepoint Education $510.19 million 0.51 $33.22 million ($0.06) -148.14
Nord Anglia Education $907.80 million 3.74 $173.60 million $0.57 57.14

Nord Anglia Education has higher revenue and earnings than Bridgepoint Education. Bridgepoint 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.

Summary

Nord Anglia Education beats Bridgepoint Education on 9 of the 14 factors compared between the two stocks.

Bridgepoint Education Company Profile

Bridgepoint Education, Inc. (Bridgepoint) is a provider of postsecondary education services. The Company’s academic institutions include Ashford University and University of the Rockies. Bridgepoint’s institutions conduct ongoing faculty and student assessment processes, and provide a range of student services. It offers Constellation, its learning platform, Waypoint Outcomes, its assessment software, and its mobile application technology. As of December 31, 2016, its institutions offered over 1,200 courses and over 80 degree programs. Ashford University offers associate’s, bachelor’s and master’s degree programs online. Ashford University comprises four colleges: the Forbes School of Business and Technology, the College of Education, the College of Health, Human Services and Science, and the College of Liberal Arts. University of the Rockies is a graduate institution that offers master’s and doctoral degree programs in the social and behavioral sciences.

Nord Anglia Education Company Profile

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.

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