Head to Head Review: Capella Education (CPLA) and Its Peers

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

Valuation and Earnings

This table compares Capella Education and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Capella Education $438.59 million $71.59 million 17.57
Capella Education Competitors $909.14 million $144.34 million 5.33

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

Profitability

This table compares Capella Education and its peers’ 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, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, Capella Education’s peers have a beta of 1.14, suggesting that their average share price is 14% more volatile than the S&P 500.

Dividends

Capella Education pays an annual dividend of $1.64 per share and has a dividend yield of 2.4%. 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.

Analyst Ratings

This is a summary of recent recommendations for Capella Education and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capella Education 0 1 2 0 2.67
Capella Education Competitors 62 443 456 2 2.41

Capella Education presently has a consensus price target of $87.00, indicating a potential upside of 27.94%. As a group, “General Education Services” companies have a potential downside of 0.02%. Given Capella Education’s stronger consensus rating and higher probable upside, research analysts plainly believe Capella Education is more favorable than its peers.

Institutional and Insider Ownership

91.5% of Capella Education shares are owned by institutional investors. Comparatively, 71.8% 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, 15.0% of shares of all “General Education Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

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

About Capella Education

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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