Financial Survey: New Oriental Education & Technology Group (EDU) vs. Universal Technical Institute (UTI)

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

Analyst Recommendations

This is a breakdown of current recommendations for Universal Technical Institute and New Oriental Education & Technology Group, as reported by MarketBeat.com.

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

New Oriental Education & Technology Group has a consensus price target of $69.76, suggesting a potential downside of 12.85%. Given New Oriental Education & Technology Group’s higher possible upside, analysts plainly believe New Oriental Education & Technology Group is more favorable than Universal Technical Institute.

Valuation & Earnings

This table compares Universal Technical Institute and New Oriental Education & Technology Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Universal Technical Institute $329.85 million 0.26 $14.20 million ($0.87) -3.95
New Oriental Education & Technology Group $1.80 billion 7.01 $310.66 million $1.74 46.01

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.

Insider & Institutional Ownership

59.0% of Universal Technical Institute shares are held by institutional investors. Comparatively, 82.5% of New Oriental Education & Technology Group shares are held by institutional investors. 28.4% of Universal Technical Institute shares are held by company insiders. Comparatively, 15.5% of New Oriental Education & Technology Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

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

Profitability

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

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

Summary

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

Universal Technical Institute Company Profile

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.

New Oriental Education & Technology Group Company Profile

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.

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