Analyzing Universal Technical Institute (UTI) & Graham (GHC)

Universal Technical Institute (NYSE:UTI) and Graham (NYSE:GHC) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Universal Technical Institute -7.06% -17.50% -8.79%
Graham 12.32% 6.48% 3.82%

Analyst Recommendations

This is a summary of current ratings for Universal Technical Institute and Graham, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal Technical Institute 0 1 0 0 2.00
Graham 0 0 0 0 N/A

Universal Technical Institute presently has a consensus target price of $6.00, indicating a potential upside of 118.98%. Given Universal Technical Institute’s higher possible upside, equities analysts plainly believe Universal Technical Institute is more favorable than Graham.

Dividends

Graham pays an annual dividend of $5.32 per share and has a dividend yield of 0.9%. Universal Technical Institute does not pay a dividend.

Earnings & Valuation

This table compares Universal Technical Institute and Graham’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Universal Technical Institute $324.26 million 0.21 -$8.12 million ($0.51) -5.37
Graham $2.59 billion 1.18 $302.04 million N/A N/A

Graham has higher revenue and earnings than Universal Technical Institute.

Institutional & Insider Ownership

63.3% of Universal Technical Institute shares are owned by institutional investors. Comparatively, 67.8% of Graham shares are owned by institutional investors. 13.3% of Universal Technical Institute shares are owned by company insiders. Comparatively, 21.6% of Graham shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Universal Technical Institute has a beta of 3.04, indicating that its stock price is 204% more volatile than the S&P 500. Comparatively, Graham has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

Summary

Graham beats Universal Technical Institute on 10 of the 12 factors compared between the two stocks.

About Universal Technical Institute

Universal Technical Institute, Inc.engages in the provision of technical training for automotive, diesel, collision repair, motorcycle and marine technicians, and offers welding technology and computer numerical control (CNC) machining programs. It offers undergraduate degree, diploma and certificate programs across the U.S. under the banner of several brands, including Universal Technical Institute, Motorcycle & Marine Mechanics Institute, and NASCAR Technical Institute. The company was founded by Robert I. Sweet in 1965 and is headquartered in Scottsdale, AZ.

About Graham

Graham Holdings Company, through its subsidiaries, operates as a diversified education and media company worldwide. It provides a range of certificate, diploma, and degree programs, as well as online education services; and test preparation business services in pre-college, graduate, health, and bar review, as well as publishes and sells test preparation and other books through retail channels. The company also offers training, test preparation services, and degrees for accounting and financial services professionals, as well as professional training courses; English-language training, academic preparation programs, and test preparation for English proficiency exams for students; and A-level examination preparation services, as well as operates three collages, one higher education institution, and one online learning institution. In addition, it owns and operates seven television stations; and provides social-media management tools designed to connect newsrooms with their users. Further, the company publishes Slate, an online magazine and Website; and two French-language news magazine Websites at slate.fr and slateafrique.com. Additionally, it provides marketing solutions on social, mobile, and video platforms; home health and hospice services; burners, igniters, dampers, and controls for combustion processes in electric utility and industrial applications; and screw jacks, linear actuators and related linear motion products, and lifting systems to customers across renewable energy, metals and metalworking, oil and gas, satellite antennae, and material handling sectors. The company also manufactures electrical components and assemblies for medical equipment, transportation, industrial, and appliance products. The company was formerly known as The Washington Post Company and changed its name to Graham Holdings Company in November 2013. Graham Holdings Company was founded in 1877 and is based in Arlington, Virginia.

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