Head to Head Analysis: Universal Technical Institute (NYSE:UTI) versus OneSpaWorld (NASDAQ:OSW)

Universal Technical Institute (NYSE:UTI) and OneSpaWorld (NASDAQ:OSW) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Universal Technical Institute and OneSpaWorld, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Technical Institute	0	2	4	0	2.67
OneSpaWorld	0	1	5	1	3.00

Universal Technical Institute currently has a consensus price target of $42.83, suggesting a potential upside of 108.27%. OneSpaWorld has a consensus price target of $30.60, suggesting a potential upside of 39.60%. Given Universal Technical Institute’s higher possible upside, research analysts plainly believe Universal Technical Institute is more favorable than OneSpaWorld.

Profitability

This table compares Universal Technical Institute and OneSpaWorld’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Technical Institute	3.88%	10.18%	4.02%
OneSpaWorld	8.02%	18.36%	14.28%

Institutional and Insider Ownership

75.7% of Universal Technical Institute shares are held by institutional investors. Comparatively, 96.0% of OneSpaWorld shares are held by institutional investors. 9.8% of Universal Technical Institute shares are held by company insiders. Comparatively, 3.6% of OneSpaWorld 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.

Earnings & Valuation

This table compares Universal Technical Institute and OneSpaWorld”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Technical Institute	$835.62 million	1.36	$63.02 million	$0.62	33.17
OneSpaWorld	$961.00 million	2.32	$71.62 million	$0.79	27.75

OneSpaWorld has higher revenue and earnings than Universal Technical Institute. OneSpaWorld is trading at a lower price-to-earnings ratio than Universal Technical Institute, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Universal Technical Institute has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, OneSpaWorld has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Summary

OneSpaWorld beats Universal Technical Institute on 11 of the 15 factors compared between the two stocks.

About Universal Technical Institute

Universal Technical Institute, Inc. provides transportation, skilled trades, and healthcare education programs in the United States. The company operates in two segments, UTI and Concorde. It offers certificate, diploma, or degree programs under various brands, such as Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology. The company also provides manufacturer specific advanced training programs, including student paid electives at its campuses; and manufacturer or dealer sponsored training at various campuses and dedicated training centers. It serves students, partners, and communities by providing education and support services in various fields. Universal Technical Institute, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.

About OneSpaWorld

OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services. The company also provides its guests access to beauty and wellness brands, including ELEMIS, Grown Alchemist, Kérastase, Dysport, Restylane, Thermage, CoolSculpting, truSculpt 3D, truSculpt iD, Good Feet, and Hyperice with various brands offered in the cruise market. The company is based in Nassau, Bahamas.