Financial Analysis: CAE (CAE) versus GP Strategies Corporation (GPX)
CAE (NYSE: CAE) and GP Strategies Corporation (NYSE:GPX) are both educational services companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.
Volatility & Risk
CAE has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, GP Strategies Corporation has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.
This is a summary of recent recommendations for CAE and GP Strategies Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|GP Strategies Corporation||0||1||1||0||2.50|
CAE presently has a consensus target price of $22.00, suggesting a potential upside of 23.73%. GP Strategies Corporation has a consensus target price of $29.50, suggesting a potential upside of 21.90%. Given CAE’s higher possible upside, equities analysts clearly believe CAE is more favorable than GP Strategies Corporation.
Earnings and Valuation
This table compares CAE and GP Strategies Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|CAE||$2.06 billion||2.31||$191.59 million||$0.77||23.09|
|GP Strategies Corporation||$490.56 million||0.83||$20.24 million||$1.18||20.51|
CAE has higher revenue and earnings than GP Strategies Corporation. GP Strategies Corporation is trading at a lower price-to-earnings ratio than CAE, indicating that it is currently the more affordable of the two stocks.
This table compares CAE and GP Strategies Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|GP Strategies Corporation||3.95%||12.16%||6.50%|
CAE pays an annual dividend of $0.29 per share and has a dividend yield of 1.6%. GP Strategies Corporation does not pay a dividend. CAE pays out 37.7% of its earnings in the form of a dividend.
Insider and Institutional Ownership
53.0% of CAE shares are owned by institutional investors. Comparatively, 89.2% of GP Strategies Corporation shares are owned by institutional investors. 18.3% of CAE shares are owned by company insiders. Comparatively, 25.7% of GP Strategies Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
CAE beats GP Strategies Corporation on 9 of the 15 factors compared between the two stocks.
CAE Inc. provides training for the civil aviation, defense and security, and healthcare markets. The Company designs and integrates training solutions. It operates through three segments: Civil Aviation Training Solutions, Defense and Security, and Healthcare. The Company provides training solutions for flight, cabin, maintenance and ground personnel in commercial, business and helicopter aviation, a range of flight simulation training devices, as well as ab initio pilot training and crew sourcing services. The Company is a training systems integrator for defense forces across the air, land and sea domains, and for government and civil security organizations responsible for public safety. The Company designs, manufactures and markets simulators, simulation center management solutions and courseware for training of medical and allied healthcare students and clinicians in educational institutions, hospitals and defense organizations across the world.
About GP Strategies Corporation
GP Strategies Corporation (GP Strategies) is a global performance improvement solutions provider of sales and technical training, e-learning solutions, management consulting and engineering services. The Company operates in five segments: Learning Solutions, Professional & Technical Services, Sandy Training & Marketing, RWD and Energy Services. Its clients include companies and governmental and other commercial customers in a variety of industries. It serves companies in the automotive, steel, oil and gas, power, chemical, electronics and technology, manufacturing, software, financial, retail, healthcare and food and beverage industries, as well as government agencies. On December 31, 2011, GP Strategies Corporation merged with and into its operating subsidiary, General Physics Corporation (General Physics). In April 2014, the Company acquired Effective-People and Effective-Learning companies.
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