Critical Comparison: Grand Canyon Education (LOPE) vs. Its Peers
Grand Canyon Education (NASDAQ: LOPE) is one of 20 public companies in the “General Education Services” industry, but how does it compare to its peers? We will compare Grand Canyon Education to similar companies based on the strength of its analyst recommendations, profitability, dividends, risk, valuation, institutional ownership and earnings.
Insider & Institutional Ownership
96.6% of Grand Canyon Education shares are held by institutional investors. Comparatively, 66.6% of shares of all “General Education Services” companies are held by institutional investors. 3.0% of Grand Canyon Education shares are held by company insiders. Comparatively, 13.9% of shares of all “General Education Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk
Grand Canyon Education has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, Grand Canyon Education’s peers have a beta of 1.14, meaning that their average stock price is 14% more volatile than the S&P 500.
This is a breakdown of current recommendations for Grand Canyon Education and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Grand Canyon Education||0||0||3||0||3.00|
|Grand Canyon Education Competitors||62||443||456||2||2.41|
Grand Canyon Education presently has a consensus target price of $88.67, suggesting a potential downside of 0.35%. As a group, “General Education Services” companies have a potential upside of 5.05%. Given Grand Canyon Education’s peers higher probable upside, analysts clearly believe Grand Canyon Education has less favorable growth aspects than its peers.
Earnings and Valuation
This table compares Grand Canyon Education and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Grand Canyon Education||$921.61 million||$310.30 million||24.58|
|Grand Canyon Education Competitors||$909.14 million||$144.34 million||5.16|
Grand Canyon Education has higher revenue and earnings than its peers. Grand Canyon Education is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This table compares Grand Canyon Education and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Grand Canyon Education||18.77%||21.77%||15.47%|
|Grand Canyon Education Competitors||0.80%||0.13%||2.03%|
Grand Canyon Education beats its peers on 10 of the 13 factors compared.
Grand Canyon Education Company Profile
Grand Canyon Education, Inc. is engaged in the provision of postsecondary education. The Company is a regionally accredited university. The Company offers the degrees, including Doctor of Education, Doctor of Business Administration, Doctor of Nursing Practice, Doctor of Philosophy, Education Specialist, Master of Divinity, Master of Arts, Master of Education, Master of Business Administration and Master of Public Administration, Master of Public Health, Master of Science, Bachelor of Arts, Bachelor of Science, and a range of programs for its degrees. It also offers certificate programs, which consist of a series of courses focused on a particular area of study for both the post-baccalaureate and post-graduate students. The Company offers its ground-based programs to students through three 15-week semesters in a calendar year and to online students in courses that generally range from 5 to 16 weeks throughout the calendar year.
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