Financial Review: Grand Canyon Education (LOPE) versus National American University Holdngs (NAUH)

Grand Canyon Education (NASDAQ:LOPE) and National American University Holdngs (NASDAQ:NAUH) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Profitability

This table compares Grand Canyon Education and National American University Holdngs’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Grand Canyon Education 22.28% 21.38% 16.08%
National American University Holdngs -18.08% -74.20% -27.35%

Analyst Ratings

This is a summary of recent recommendations and price targets for Grand Canyon Education and National American University Holdngs, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Grand Canyon Education 0 0 4 0 3.00
National American University Holdngs 0 0 0 0 N/A

Grand Canyon Education currently has a consensus price target of $133.00, indicating a potential upside of 5.48%. Given Grand Canyon Education’s higher possible upside, analysts clearly believe Grand Canyon Education is more favorable than National American University Holdngs.

Valuation and Earnings

This table compares Grand Canyon Education and National American University Holdngs’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Grand Canyon Education $974.13 million 6.24 $203.31 million $3.96 31.84
National American University Holdngs $77.18 million 0.19 -$12.16 million N/A N/A

Grand Canyon Education has higher revenue and earnings than National American University Holdngs.

Insider & Institutional Ownership

94.1% of Grand Canyon Education shares are held by institutional investors. Comparatively, 13.2% of National American University Holdngs shares are held by institutional investors. 2.4% of Grand Canyon Education shares are held by insiders. Comparatively, 56.6% of National American University Holdngs shares are held by 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.

Risk and Volatility

Grand Canyon Education has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, National American University Holdngs has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.

Summary

Grand Canyon Education beats National American University Holdngs on 10 of the 11 factors compared between the two stocks.

Grand Canyon Education Company Profile

Grand Canyon Education, Inc., together with its subsidiaries, provides education services in the United States and Canada. The company operates Grand Canyon University that offers approximately 225 graduate and undergraduate degree programs and certificates across 9 colleges online and on ground through campus in Phoenix, Arizona; leased facilities; and facilities owned by third party employers. As of December 31, 2017, it had approximately 90,300 students enrolled in its programs. The company was founded in 1949 and is based in Phoenix, Arizona.

National American University Holdngs Company Profile

National American University Holdings, Inc. owns and operates National American University (NAU) that provides professional and technical postsecondary education primarily for working adults and other non-traditional students in the United States. It operates in two segments, NAU and Other. The company offers diploma, associate, baccalaureate, master's, and doctoral degree programs in business-related disciplines, such as accounting, management, business administration, and information technology; healthcare-related disciplines, including occupational therapy, medical assisting, nursing, surgical technology, and healthcare information and management; legal-related disciplines comprising paralegal, criminal justice, and professional legal studies; and higher education. It also provides courseware development, technical support, and online class hosting services to various colleges, technical schools, and training institutions in the United States and Canada. As of July 31, 2018, the company operated through 33 educational sites in Colorado, Indiana, Kansas, Minnesota, Missouri, Nebraska, New Mexico, Oklahoma, South Dakota, and Texas; and distance learning service centers and administration offices in Rapid City, South Dakota, as well as through the Internet. In addition, it engages in the real estate business, which rents apartment units; and develops and sells condominium units in the Fairway Hills Planned Residential Development area of Rapid City, South Dakota. The company was founded in 1941 and is headquartered in Rapid City, South Dakota.

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