Capella Education (NASDAQ: CPLA) and Nord Anglia Education (NYSE:NORD) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of recent ratings for Capella Education and Nord Anglia Education, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capella Education 0 1 2 0 2.67
Nord Anglia Education 1 5 2 0 2.13

Capella Education currently has a consensus target price of $85.36, indicating a potential upside of 26.74%. Nord Anglia Education has a consensus target price of $30.50, indicating a potential downside of 6.93%. Given Capella Education’s stronger consensus rating and higher possible upside, research analysts clearly believe Capella Education is more favorable than Nord Anglia Education.

Risk and Volatility

Capella Education has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Nord Anglia Education has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Profitability

This table compares Capella Education and Nord Anglia Education’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Capella Education 10.49% 20.23% 15.34%
Nord Anglia Education 6.71% 22.11% 3.06%

Earnings and Valuation

This table compares Capella Education and Nord Anglia Education’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Capella Education $438.59 million 1.79 $71.59 million $3.87 17.40
Nord Anglia Education $907.80 million 3.76 $173.60 million $0.57 57.49

Nord Anglia Education has higher revenue and earnings than Capella Education. Capella Education is trading at a lower price-to-earnings ratio than Nord Anglia Education, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

89.1% of Capella Education shares are held by institutional investors. Comparatively, 35.3% of Nord Anglia Education shares are held by institutional investors. 3.6% of Capella Education shares are held by company insiders. Comparatively, 2.7% of Nord Anglia Education shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Capella Education pays an annual dividend of $1.64 per share and has a dividend yield of 2.4%. Nord Anglia Education does not pay a dividend. Capella Education pays out 42.4% of its earnings in the form of a dividend.

Summary

Capella Education beats Nord Anglia Education on 8 of the 15 factors compared between the two stocks.

About Capella Education

Capella Education Company is an education services company. The Company provides direct path between learning and employment through its online postsecondary education offerings and through programs to develop job-ready skills for demand markets. The company’s segments include post-secondary segment and job-ready skills segment. The post-secondary segment has Capella University (the University) and Sophia Learning, LLC (Sophia). The job-ready skills segment has Capella Learning Solutions, LLC (CLS), Hackbright Academy, Inc. (Hackbright) and DevMountain, LLC (DevMountain). The Company’s program offers six markets, which include public service leadership; nursing and health sciences; social and behavioral sciences; business and technology; education and undergraduate studies. Capella University offers over 1,940 online courses and approximately 50 academic programs with approximately 150 specializations to approximately 38,000 learners.

About Nord Anglia Education

Nord Anglia Education, Inc. is an operator of international schools. As of August 31, 2016, the Company taught over 37,000 students, from kindergarten through the end of secondary school (K-12), at its 43 schools in China, Europe, the Middle East, South East Asia and North America. The Company’s segments include China, Europe, Middle East (ME), Southeast Asia (SEA), North America and Other. The China segment includes its activities in the People’s Republic of China and the Hong Kong Special Administrative Region. The Europe segment includes the Company’s activities in Switzerland, Slovakia, Hungary, the Czech Republic, Spain and Poland. The ME segment includes the Company’s activities in the United Arab Emirates and Qatar. The SEA segment includes the Company’s activities in Thailand, Singapore, Cambodia and Vietnam. The North America segment includes the Company’s activities in the United States and Mexico. The Other segment includes the Learning Services division.

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