Contrasting Universal Technical Institute (NYSE:UTI) and Classover (NASDAQ:KIDZ)

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

Insider and Institutional Ownership

74.7% of Classover shares are held by institutional investors. Comparatively, 75.7% of Universal Technical Institute shares are held by institutional investors. 0.1% of Classover shares are held by insiders. Comparatively, 9.8% of Universal Technical Institute shares are held by 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.

Earnings and Valuation

This table compares Classover and Universal Technical Institute”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Classover	$3.37 million	0.76	-$7.05 million	$99.95	0.03
Universal Technical Institute	$835.62 million	1.42	$63.02 million	$0.62	34.72

Universal Technical Institute has higher revenue and earnings than Classover. Classover 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Classover	-338.62%	-167.79%	-59.29%
Universal Technical Institute	3.88%	10.18%	4.02%

Volatility and Risk

Classover has a beta of -0.71, suggesting that its stock price is 171% less volatile than the S&P 500. Comparatively, Universal Technical Institute has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Classover and Universal Technical Institute, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Classover	1	0	0	0	1.00
Universal Technical Institute	0	2	4	0	2.67

Universal Technical Institute has a consensus price target of $42.83, indicating a potential upside of 98.96%. Given Universal Technical Institute’s stronger consensus rating and higher possible upside, analysts plainly believe Universal Technical Institute is more favorable than Classover.

Summary

Universal Technical Institute beats Classover on 13 of the 14 factors compared between the two stocks.

About Classover

Classover is an online enrichment program in Manhattan, New York that offers over 20 courses taught by certified instructors. It caters to children aged 4 to 17, providing personalized attention and a supportive learning environment. Classover is recognized worldwide by over 20,000 parents and children in more than 34 countries. Classover’s proprietary course platform app provides exclusive benefits to students, including access to class schedules, remaining class credits, and class history. As an official test center for the Math Kangaroo Competition and other high-value competition channels, Classover is certified to provide high-quality teaching services to help students improve their academic performance. The school’s WASC certification is a testament to its teaching quality, meeting high standards in student satisfaction, teacher qualifications, classroom environment, and course content quality. Classover limits class size to six students to ensure personalized attention, delivering over 330,000 hours of online classes with a course renewal rate exceeding 90%. The platform has helped students win competition awards, making it a recognized “The Best Parenting Tool” in the parent community.

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.