GP Strategies (NYSE: GPX) and Laureate International Universities (NASDAQ:LAUR) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.
Risk & Volatility
GP Strategies has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Laureate International Universities has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for GP Strategies and Laureate International Universities, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Laureate International Universities||0||1||9||0||2.90|
GP Strategies presently has a consensus target price of $29.00, suggesting a potential upside of 64.77%. Laureate International Universities has a consensus target price of $18.35, suggesting a potential upside of 28.05%. Given GP Strategies’ stronger consensus rating and higher probable upside, research analysts clearly believe GP Strategies is more favorable than Laureate International Universities.
This table compares GP Strategies and Laureate International Universities’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Laureate International Universities||8.69%||8.41%||1.79%|
Institutional and Insider Ownership
89.2% of GP Strategies shares are held by institutional investors. Comparatively, 29.9% of Laureate International Universities shares are held by institutional investors. 25.7% of GP Strategies shares are held by insiders. Comparatively, 13.1% of Laureate International Universities shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares GP Strategies and Laureate International Universities’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|GP Strategies||$509.21 million||0.57||$12.89 million||$1.35||13.04|
|Laureate International Universities||$4.38 billion||0.61||$91.46 million||($1.20)||-11.94|
Laureate International Universities has higher revenue and earnings than GP Strategies. Laureate International Universities is trading at a lower price-to-earnings ratio than GP Strategies, indicating that it is currently the more affordable of the two stocks.
GP Strategies beats Laureate International Universities on 7 of the 13 factors compared between the two stocks.
About GP Strategies
GP Strategies Corporation provides performance improvement and learning solutions worldwide. It operates through four segments: Learning Solutions, Professional & Technical Services, Sandy Training & Marketing, and Performance Readiness Solutions. The Learning Solutions segment delivers training, curriculum design and development, digital learning, system hosting, managed learning, and consulting services to electronics and semiconductors, healthcare, software, financial services, and other industries, as well as government agencies; and provides apprenticeship and vocational skills training services. The Professional & Technical Services segment offers training, consulting, engineering, and technical services, including lean consulting, emergency preparedness, safety and regulatory compliance, chemical demilitarization, and environmental services to the manufacturing, steel, pharmaceutical, energy, and petrochemical industries, as well as federal and state government agencies, and government contractors. The Sandy Training & Marketing segment provides custom product sales training to customer sales forces; and technical training services to automotive manufacturers and customers in other industries. The Performance Readiness Solutions segment offers performance and technology consulting services, such as platform adoption, end-user training, change and knowledge management, customer product training outsourcing, training content development, and sales enablement solutions; and organization performance solutions comprising leadership development training, strategy-through-implementation consulting services, and employee engagement tools and services to manufacturing, aerospace, healthcare, life sciences, consumer products, financial, telecommunications, and higher education industries, as well as government agencies. GP Strategies Corporation was founded in 1959 and is headquartered in Columbia, Maryland.
About Laureate International Universities
Laureate Education, Inc., together with its subsidiaries, provides higher education programs and services to students through universities and higher education institutions. It operates through six segments: Brazil, Mexico, Andean & Iberian, Central America & U.S. Campuses, EMEAA, and Online & Partnerships. The company offers a range of undergraduate and graduate degree programs primarily in the areas of business and management, medicine and health sciences, and engineering and information technology through campus-based, online, and hybrid programs. It also operates online institutions that offer professionally-oriented degree programs primarily for the working adults with undergraduate and graduate degree programs. The company was formerly known as Sylvan Learning Systems, Inc. and changed its name to Laureate Education, Inc. in May 2004. The company was founded in 1989 and is headquartered in Baltimore, Maryland. Laureate Education, Inc. is a subsidiary of Wengen Alberta, Limited Partnership.
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