American Public Education (NASDAQ: APEI) and DeVry Education Group (NYSE:ATGE) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Profitability

This table compares American Public Education and DeVry Education Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Public Education 5.18% 7.87% 6.55%
DeVry Education Group 6.76% 10.93% 7.71%

Volatility and Risk

American Public Education has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, DeVry Education Group has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Institutional and Insider Ownership

92.0% of American Public Education shares are held by institutional investors. 3.6% of American Public Education shares are held by insiders. Comparatively, 5.3% of DeVry Education Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares American Public Education and DeVry Education Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
American Public Education $300.31 million 1.01 $56.56 million $0.95 19.74
DeVry Education Group $1.81 billion 1.15 $313.39 million $1.91 17.57

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

Analyst Ratings

This is a summary of recent recommendations for American Public Education and DeVry Education Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Public Education 0 1 0 0 2.00
DeVry Education Group 0 2 3 0 2.60

American Public Education presently has a consensus target price of $19.00, suggesting a potential upside of 1.33%. DeVry Education Group has a consensus target price of $34.25, suggesting a potential upside of 2.09%. Given DeVry Education Group’s stronger consensus rating and higher probable upside, analysts clearly believe DeVry Education Group is more favorable than American Public Education.

Dividends

DeVry Education Group pays an annual dividend of $0.18 per share and has a dividend yield of 0.5%. American Public Education does not pay a dividend. DeVry Education Group pays out 9.4% of its earnings in the form of a dividend.

Summary

DeVry Education Group beats American Public Education on 12 of the 16 factors compared between the two stocks.

About American Public Education

American Public Education, Inc. provides online and on-campus postsecondary education. The Company provides postsecondary education through its subsidiary institutions, American Public University System, Inc. (APUS) and Hondros College of Nursing (HCON). It operates through two segments: American Public Education Segment, which consists of the operational activities of APUS, other corporate activities, and minority investments, and Hondros College of Nursing Segment, which consists of the operational activities of HCON. APUS provides online postsecondary education to approximately 88,700 adult learners serving the needs of the military and public safety communities as of December 31, 2016. As of December 31, 2016, HCON provided nursing education to approximately 1,300 students across five campuses in the State of Ohio, as well as online. It offers a Diploma in Practical Nursing and an Associate Degree in Nursing. As of December 31, 2016, the Company had approximately 90,000 students.

About DeVry Education Group

Adtalem Global Education Inc., formerly DeVry Education Group Inc. (DeVry Group) is a global provider of educational services. DeVry Group’s focuses on empowering its students to achieve their educational and career goals. DeVry Group’s institutions offer a range of programs in healthcare, technology, business, accounting, finance and law. The Company operates in three segments: Medical and Healthcare; International and Professional Education, and Business, Technology and Management. Medical and Healthcare includes DeVry Medical International, Chamberlain College of Nursing (Chamberlain) and Carrington College. International and Professional Education consists of DeVry Brasil and Becker Professional Education. Business, Technology and Management consists of DeVry University. As of June 30, 2016, DMI operated three institutions: American University of the Caribbean School of Medicine (AUC), Ross University School of Medicine (RUSM) and Ross University School of Veterinary Medicine.

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