Analyzing Universal Technical Institute (UTI) & New Oriental Education & Technology Group (NYSE:EDU)

New Oriental Education & Technology Group (NYSE: EDU) and Universal Technical Institute (NYSE:UTI) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Earnings and Valuation

This table compares New Oriental Education & Technology Group and Universal Technical Institute’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
New Oriental Education & Technology Group $1.80 billion 6.85 $310.66 million $1.74 44.96
Universal Technical Institute $329.85 million 0.26 $14.20 million ($0.87) -3.93

New Oriental Education & Technology Group has higher revenue and earnings than Universal Technical Institute. Universal Technical Institute is trading at a lower price-to-earnings ratio than New Oriental Education & Technology Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares New Oriental Education & Technology Group and Universal Technical Institute’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Oriental Education & Technology Group 15.25% 17.02% 10.29%
Universal Technical Institute -4.87% -6.42% -3.06%

Insider & Institutional Ownership

83.1% of New Oriental Education & Technology Group shares are owned by institutional investors. Comparatively, 60.4% of Universal Technical Institute shares are owned by institutional investors. 15.5% of New Oriental Education & Technology Group shares are owned by company insiders. Comparatively, 28.4% of Universal Technical Institute shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

New Oriental Education & Technology Group has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Universal Technical Institute has a beta of 3.52, meaning that its stock price is 252% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for New Oriental Education & Technology Group and Universal Technical Institute, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Oriental Education & Technology Group 0 2 6 0 2.75
Universal Technical Institute 0 0 0 0 N/A

New Oriental Education & Technology Group currently has a consensus price target of $69.76, suggesting a potential downside of 10.83%. Given New Oriental Education & Technology Group’s higher probable upside, equities analysts plainly believe New Oriental Education & Technology Group is more favorable than Universal Technical Institute.

Summary

New Oriental Education & Technology Group beats Universal Technical Institute on 10 of the 12 factors compared between the two stocks.

About New Oriental Education & Technology Group

New Oriental Education & Technology Group Inc. is a provider of private educational services in the People’s Republic of China (the PRC). The Company provides educational services under its New Oriental brand. The Company operates through seven segments, which include language training and test preparation, primary and secondary school education, online education, content development and distribution, pre-school education, overseas study consulting services and study tour. The Company offers a range of educational programs, services and products, consisting of English and other foreign language training, test preparation courses for admissions and assessment tests in the United States, the People’s Republic of China and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education.

About Universal Technical Institute

Universal Technical Institute, Inc. is a provider of postsecondary education for students seeking careers as professional automotive, diesel, collision repair, motorcycle and marine technicians as measured by total average undergraduate full-time enrollment and graduates. The Company offers undergraduate degree or diploma programs at approximately 12 campuses across the United States under the banner of various brands, including Universal Technical Institute (UTI), Motorcycle Mechanics Institute and Marine Mechanics Institute (collectively, MMI) and NASCAR Technical Institute (NASCAR Tech). The Company also offers manufacturer specific advanced training (MSAT) programs, including student-paid electives, at its campuses and manufacturer or dealer sponsored training at certain campuses and dedicated training centers. UTI offers automotive, diesel and industrial, and collision repair and refinishing programs.

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