Comparing Educational Development (EDUC) and Its Competitors

Educational Development (NASDAQ:EDUC) is one of 259 publicly-traded companies in the “Media” industry, but how does it contrast to its competitors? We will compare Educational Development to similar businesses based on the strength of its analyst recommendations, profitability, earnings, risk, dividends, valuation and institutional ownership.

Earnings and Valuation

This table compares Educational Development and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Educational Development	$20.56 million	$2.33 million	5.89
Educational Development Competitors	$3.20 billion	-$7.90 million	17.87

Educational Development’s competitors have higher revenue, but lower earnings than Educational Development. Educational Development is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

19.6% of Educational Development shares are owned by institutional investors. Comparatively, 38.8% of shares of all “Media” companies are owned by institutional investors. 11.9% of Educational Development shares are owned by company insiders. Comparatively, 17.6% of shares of all “Media” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Educational Development and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Educational Development	9.75%	-18.23%	-12.73%
Educational Development Competitors	-20.08%	-48.65%	-5.12%

Analyst Recommendations

This is a breakdown of recent ratings for Educational Development and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Educational Development	1	0	0	0	1.00
Educational Development Competitors	2242	6858	10817	475	2.47

As a group, “Media” companies have a potential upside of 22.05%. Given Educational Development’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Educational Development has less favorable growth aspects than its competitors.

Dividends

Educational Development pays an annual dividend of $0.10 per share and has a dividend yield of 7.4%. Educational Development pays out 43.5% of its earnings in the form of a dividend. As a group, “Media” companies pay a dividend yield of 5.3% and pay out 128.5% of their earnings in the form of a dividend. Educational Development is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Volatility and Risk

Educational Development has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Educational Development’s competitors have a beta of 0.96, meaning that their average share price is 4% less volatile than the S&P 500.

Summary

Educational Development competitors beat Educational Development on 9 of the 15 factors compared.

Educational Development Company Profile

Educational Development Corporation, a publishing company, operates as a publisher of educational children's books in the United States. It operates through two segments, PaperPie and Publishing. The company offers various books, including touchy-feely board books, activity books and flashcards, adventure and search books, art books, sticker books, and foreign language books, as well as internet-linked books comprising science and math titles, and chapter books and novels. It markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers, and its internal tele-sales group; and through a network of independent sales consultants through internet sales, direct sales, home shows, and book fairs. Educational Development Corporation was incorporated in 1965 and is headquartered in Tulsa, Oklahoma.