Career Education Corporation (NASDAQ: CECO) is one of 20 publicly-traded companies in the “General Education Services” industry, but how does it weigh in compared to its competitors? We will compare Career Education Corporation to related companies based on the strength of its profitability, risk, dividends, valuation, earnings, analyst recommendations and institutional ownership.

Profitability

This table compares Career Education Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Career Education Corporation -3.82% 3.73% 2.35%
Career Education Corporation Competitors 0.80% 0.13% 2.03%

Institutional and Insider Ownership

75.4% of Career Education Corporation shares are owned by institutional investors. Comparatively, 66.6% of shares of all “General Education Services” companies are owned by institutional investors. 4.9% of Career Education Corporation 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Career Education Corporation and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Career Education Corporation $631.21 million $42.44 million -29.72
Career Education Corporation Competitors $909.14 million $144.34 million 4.53

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

Volatility & Risk

Career Education Corporation has a beta of 2.71, meaning that its stock price is 171% more volatile than the S&P 500. Comparatively, Career Education Corporation’s competitors have a beta of 1.14, meaning that their average stock price is 14% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Career Education Corporation and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Career Education Corporation 0 1 1 0 2.50
Career Education Corporation Competitors 61 437 454 2 2.42

Career Education Corporation presently has a consensus target price of $13.00, suggesting a potential upside of 21.50%. As a group, “General Education Services” companies have a potential upside of 0.93%. Given Career Education Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Career Education Corporation is more favorable than its competitors.

Summary

Career Education Corporation beats its competitors on 8 of the 13 factors compared.

About Career Education Corporation

Career Education Corporation, through its colleges, institutions and universities, offers education to students in a range of career-oriented disciplines through online, on-ground and hybrid learning programs. The Company’s American InterContinental University (AIU) and Colorado Technical University (CTU) provide degree programs through the master’s or doctoral level as well as associate and bachelor’s levels. The Company operates through four segments: CTU, AIU, Culinary Arts and Transitional Group. Its University group consists of AIU and CTU, which serve students online with career-focused degree programs. Its Career Colleges Group consists of Culinary Arts and Transitional Group segments. The Culinary Arts segment includes Le Cordon Bleu institutions in North America (LCB), which offer hands-on educational programs in the career-oriented disciplines of culinary arts and patisserie and baking in the commercial-grade kitchens of Le Cordon Bleu.

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