Professional Diversity Network (NASDAQ: IPDN) and 2U (NASDAQ:TWOU) are both it services & consulting – nec companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.
Insider and Institutional Ownership
4.7% of Professional Diversity Network shares are held by institutional investors. 19.0% of Professional Diversity Network shares are held by company insiders. Comparatively, 8.4% of 2U shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Professional Diversity Network and 2U’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Professional Diversity Network||$26.23 million||0.61||-$4.10 million||($4.71)||-0.86|
|2U||$205.86 million||18.36||-$20.68 million||($0.67)||-108.03|
Professional Diversity Network has higher earnings, but lower revenue than 2U. 2U is trading at a lower price-to-earnings ratio than Professional Diversity Network, indicating that it is currently the more affordable of the two stocks.
This table compares Professional Diversity Network and 2U’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Professional Diversity Network||-86.95%||-37.27%||-25.12%|
Risk and Volatility
Professional Diversity Network has a beta of 3.16, meaning that its stock price is 216% more volatile than the S&P 500. Comparatively, 2U has a beta of -0.2, meaning that its stock price is 120% less volatile than the S&P 500.
This is a summary of recent ratings and target prices for Professional Diversity Network and 2U, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Professional Diversity Network||0||0||0||0||N/A|
2U has a consensus target price of $71.40, suggesting a potential downside of 1.35%. Given 2U’s higher possible upside, analysts clearly believe 2U is more favorable than Professional Diversity Network.
2U beats Professional Diversity Network on 8 of the 12 factors compared between the two stocks.
Professional Diversity Network Company Profile
Professional Diversity Network, Inc. is an operator of professional networks with a focus on diversity. The Company serves various communities, including Women, Hispanic-Americans, African-Americans, Asian-Americans, Disabled, Military Professionals, and Lesbian, Gay, Bisexual and Transgender (LGBT). The Company’s segments include Professional Diversity Network (PDN Network), which includes online professional networking communities with career resources for the needs of various diverse cultural groups; National Association of Professional Women (NAPW Network), a women-only professional networking organization, and Noble Voice operations (Noble Voice), a career consultation and lead generation service. The Noble Voice call centers qualify callers for real-time job placement. The PDN Network consists of various online professional networking communities dedicated to serving diverse professionals in the United States and employers seeking to hire diverse talent.
2U Company Profile
2U, Inc. is a provider of an integrated solution consisting of cloud-based software-as-a-service (SaaS) combined with technology-enabled services (together, the Platform) that allows colleges and universities to deliver online degree programs. The Company’s SaaS technology consists of a learning environment (Online Campus), which acts as the hub for all student and faculty academic and social interaction, and a suite of integrated applications, which the Company uses to launch, operate and support the Company’s clients’ programs. The Company also provides a suite of technology-enabled services optimized with data analysis and machine learning techniques that support the complete lifecycle of a higher education program, including attracting students, advising students through the admissions application process, providing technical, success coaching and other support, facilitating accessibility to individuals with disabilities, and facilitating in-program field placements.
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