Bridgepoint Education (NYSE: BPI) and Strayer Education (NASDAQ:STRA) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Risk & Volatility

Bridgepoint Education has a beta of 2.19, indicating that its stock price is 119% more volatile than the S&P 500. Comparatively, Strayer Education has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bridgepoint Education $510.19 million 0.55 $33.22 million ($0.06) -159.97
Strayer Education $449.07 million 2.08 $77.90 million $3.21 27.19

Strayer Education has higher revenue, but lower earnings than Bridgepoint Education. Bridgepoint Education is trading at a lower price-to-earnings ratio than Strayer Education, indicating that it is currently the more affordable of the two stocks.

Dividends

Strayer Education pays an annual dividend of $1.00 per share and has a dividend yield of 1.1%. Bridgepoint Education does not pay a dividend. Strayer Education pays out 31.2% of its earnings in the form of a dividend.

Profitability

This table compares Bridgepoint Education and Strayer 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%
Strayer Education 7.90% 17.65% 11.15%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Bridgepoint Education and Strayer Education, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bridgepoint Education 0 1 0 0 2.00
Strayer Education 0 2 1 0 2.33

Bridgepoint Education presently has a consensus price target of $14.00, suggesting a potential upside of 45.83%. Strayer Education has a consensus price target of $94.00, suggesting a potential upside of 7.71%. Given Bridgepoint Education’s higher possible upside, analysts plainly believe Bridgepoint Education is more favorable than Strayer Education.

Institutional and Insider Ownership

92.8% of Bridgepoint Education shares are held by institutional investors. Comparatively, 93.0% of Strayer Education shares are held by institutional investors. 41.5% of Bridgepoint Education shares are held by company insiders. Comparatively, 6.7% of Strayer Education shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Strayer Education beats Bridgepoint Education on 11 of the 16 factors compared between the two stocks.

About Bridgepoint Education

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.

About Strayer Education

Strayer Education, Inc. is an education services holding company. The Company provides post-secondary education and other academic programs, through its subsidiaries, Strayer University (the University) and New York Code and Design Academy (NYCDA). As of December 31, 2016, the University offered undergraduate and graduate degree programs in business administration, accounting, information technology, education, health services administration, nursing, public administration and criminal justice at 74 physical campuses located in the Mid-Atlantic and Southern regions of the United States, and online. The University also offers an executive Master of Business Administration (MBA) online through its Jack Welch Management Institute. Its subsidiary, NYCDA, provides non-degree courses in Web and application software development, primarily at its campus in New York City. Each undergraduate degree program includes courses in oral and written communication skills, as well as mathematics.

Receive News & Stock Ratings for Bridgepoint Education Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Bridgepoint Education Inc. and related stocks with our FREE daily email newsletter.