The Graham (NYSE: GHC) and Aspen Group (NASDAQ:ASPU) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.
Insider and Institutional Ownership
69.0% of The Graham shares are owned by institutional investors. Comparatively, 6.1% of Aspen Group shares are owned by institutional investors. 22.5% of The Graham shares are owned by insiders. Comparatively, 26.3% of Aspen Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
The Graham has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Aspen Group has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.
This table compares The Graham and Aspen Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares The Graham and Aspen Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The Graham||$2.59 billion||1.24||$302.04 million||N/A||N/A|
|Aspen Group||$14.25 million||9.88||-$1.10 million||($0.10)||-76.70|
The Graham has higher revenue and earnings than Aspen Group.
This is a breakdown of recent ratings and price targets for The Graham and Aspen Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Aspen Group has a consensus target price of $12.13, indicating a potential upside of 58.08%. Given Aspen Group’s higher probable upside, analysts plainly believe Aspen Group is more favorable than The Graham.
The Graham pays an annual dividend of $5.32 per share and has a dividend yield of 0.9%. Aspen Group does not pay a dividend.
The Graham beats Aspen Group on 8 of the 13 factors compared between the two stocks.
About The Graham
Graham Holdings Company, through its subsidiaries, operates as a diversified education and media company worldwide. It provides a range of certificate, diploma, and degree programs, as well as online education services; and test preparation business services in pre-college, graduate, health, and bar review, as well as publishes and sells test preparation and other books through retail channels. The company also offers training, test preparation services, and degrees for accounting and financial services professionals, as well as professional training courses; English-language training, academic preparation programs, and test preparation for English proficiency exams for students; and A-level examination preparation services, as well as operates three collages, one higher education institution, and one online learning institution. In addition, it owns and operates seven television stations; and provides social-media management tools designed to connect newsrooms with their users. Further, the company publishes Slate, an online magazine and Website; and two French-language news magazine Websites at slate.fr and slateafrique.com. Additionally, it provides marketing solutions on social, mobile, and video platforms; home health and hospice services; burners, igniters, dampers, and controls for combustion processes in electric utility and industrial applications; and screw jacks, linear actuators and related linear motion products, and lifting systems to customers across renewable energy, metals and metalworking, oil and gas, satellite antennae, and material handling sectors. The company also manufactures electrical components and assemblies for medical equipment, transportation, industrial, and appliance products. The company was formerly known as The Washington Post Company and changed its name to Graham Holdings Company in November 2013. Graham Holdings Company was founded in 1877 and is based in Arlington, Virginia.
About Aspen Group
Aspen Group, Inc. provides online higher education services in the United States. The company offers certificate programs; and associate, bachelor's, master's, and doctoral degree programs in a range of areas, including nursing, business, education, technology, and professional studies. As of April 30, 2017, it had 4,681 degree-seeking students enrolled. The company was founded in 1987 and is headquartered in Denver, Colorado.
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