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

Earnings & Valuation

This table compares Career Education Corporation and Nord Anglia Education’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Career Education Corporation $631.21 million 1.04 $42.44 million ($0.36) -26.42
Nord Anglia Education $907.80 million 3.74 $173.60 million $0.57 57.14

Nord Anglia Education has higher revenue and earnings than Career Education Corporation. Career Education Corporation 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.

Institutional & Insider Ownership

75.4% of Career Education Corporation shares are held by institutional investors. Comparatively, 30.8% of Nord Anglia Education shares are held by institutional investors. 4.9% of Career Education Corporation shares are held 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Career Education Corporation and Nord Anglia Education, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Career Education Corporation 0 1 1 0 2.50
Nord Anglia Education 1 5 2 0 2.13

Career Education Corporation currently has a consensus price target of $13.00, suggesting a potential upside of 36.70%. Nord Anglia Education has a consensus price target of $30.50, suggesting a potential downside of 6.36%. Given Career Education Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Career Education Corporation is more favorable than Nord Anglia Education.

Risk and Volatility

Career Education Corporation has a beta of 2.74, suggesting that its share price is 174% more volatile than the S&P 500. Comparatively, Nord Anglia Education has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Career Education Corporation -3.82% 3.73% 2.35%
Nord Anglia Education 6.71% 22.11% 3.06%

Summary

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

About Career Education Corporation

Career Education Corporation, through its colleges, institutions and universities, offers education to students in a range of career-oriented disciplines through online, on-ground and hybrid learning programs. The Company’s American InterContinental University (AIU) and Colorado Technical University (CTU) provide degree programs through the master’s or doctoral level as well as associate and bachelor’s levels. The Company operates through four segments: CTU, AIU, Culinary Arts and Transitional Group. Its University group consists of AIU and CTU, which serve students online with career-focused degree programs. Its Career Colleges Group consists of Culinary Arts and Transitional Group segments. The Culinary Arts segment includes Le Cordon Bleu institutions in North America (LCB), which offer hands-on educational programs in the career-oriented disciplines of culinary arts and patisserie and baking in the commercial-grade kitchens of Le Cordon Bleu.

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.

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