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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Nord Anglia Education and Apollo Education Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nord Anglia Education 1 5 2 0 2.13
Apollo Education Group 0 0 1 0 3.00

Nord Anglia Education currently has a consensus price target of $30.50, suggesting a potential downside of 6.36%. Given Nord Anglia Education’s higher probable upside, equities research analysts clearly believe Nord Anglia Education is more favorable than Apollo Education Group.

Profitability

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

Net Margins Return on Equity Return on Assets
Nord Anglia Education 6.71% 22.11% 3.06%
Apollo Education Group 0.66% 1.53% 0.65%

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Nord Anglia Education $907.80 million 3.74 $173.60 million $0.57 57.14
Apollo Education Group N/A N/A N/A ($0.19) -52.61

Nord Anglia Education has higher revenue and earnings than Apollo Education Group. Apollo Education Group 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 and Insider Ownership

30.8% of Nord Anglia Education shares are held by institutional investors. Comparatively, 73.3% of Apollo Education Group shares are held by institutional investors. 4.8% of Apollo Education Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Nord Anglia Education has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Apollo Education Group has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Summary

Nord Anglia Education beats Apollo Education Group on 8 of the 11 factors compared between the two stocks.

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.

About Apollo Education Group

Apollo Education Group, Inc. is a United States-based education provider. The Company offers undergraduate, graduate, certificate and non-degree educational programs and services, online and on-campus, to working adults in the United States and abroad. Its segments include University of Phoenix, Apollo Global and Other. The University of Phoenix segment offers undergraduate and graduate degrees through its colleges and schools in a range of program areas, as well as various non-degree programs. Primarily, the University of Phoenix’s students attend classes online. It also offers educational programs and services at ground locations throughout the United States. The Apollo Global segment includes its institutions based outside the United States and its corporate operations. The Other segment includes College for Financial Planning Institutes Corporation; Western International University, Inc.; TIY Academy, LLC; Apollo Professional Development, and Apollo corporate activities.

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