Capella Education (NASDAQ: CPLA) is one of 20 public companies in the “General Education Services” industry, but how does it compare to its competitors? We will compare Capella Education to similar companies based on the strength of its dividends, risk, earnings, valuation, profitability, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

91.5% of Capella Education shares are owned by institutional investors. Comparatively, 66.6% of shares of all “General Education Services” companies are owned by institutional investors. 3.6% of Capella Education shares are owned by company insiders. Comparatively, 13.9% of shares of all “General Education Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Capella Education and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capella Education 0 1 2 0 2.67
Capella Education Competitors 61 437 454 2 2.42

Capella Education currently has a consensus target price of $87.00, suggesting a potential upside of 24.55%. As a group, “General Education Services” companies have a potential downside of 2.54%. Given Capella Education’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Capella Education is more favorable than its competitors.

Profitability

This table compares Capella Education and its competitors’ 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%
Capella Education Competitors 0.80% 0.13% 2.03%

Risk and Volatility

Capella Education has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, Capella Education’s competitors have a beta of 1.14, meaning that their average stock price is 14% more volatile than the S&P 500.

Earnings and Valuation

This table compares Capella Education and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Capella Education $438.59 million $71.59 million 18.05
Capella Education Competitors $909.14 million $144.34 million 4.53

Capella Education’s competitors have higher revenue and earnings than Capella Education. Capella Education is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Capella Education pays an annual dividend of $1.64 per share and has a dividend yield of 2.3%. Capella Education pays out 42.4% of its earnings in the form of a dividend. As a group, “General Education Services” companies pay a dividend yield of 1.5% and pay out 34.6% of their earnings in the form of a dividend.

Summary

Capella Education beats its competitors on 9 of the 15 factors compared.

Capella Education Company Profile

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.

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