Critical Analysis: Strayer Education (STRA) & Its Competitors
Strayer Education (NASDAQ: STRA) is one of 20 publicly-traded companies in the “General Education Services” industry, but how does it compare to its peers? We will compare Strayer Education to related companies based on the strength of its earnings, risk, profitability, institutional ownership, dividends, valuation and analyst recommendations.
This is a breakdown of recent ratings and price targets for Strayer Education and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Strayer Education Competitors||95||531||499||10||2.37|
Strayer Education presently has a consensus target price of $94.00, suggesting a potential upside of 6.72%. As a group, “General Education Services” companies have a potential upside of 0.19%. Given Strayer Education’s higher probable upside, research analysts plainly believe Strayer Education is more favorable than its peers.
Strayer Education pays an annual dividend of $1.00 per share and has a dividend yield of 1.1%. Strayer Education pays out 31.2% 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.
Institutional and Insider Ownership
93.0% of Strayer Education shares are held by institutional investors. Comparatively, 71.8% of shares of all “General Education Services” companies are held by institutional investors. 6.7% of Strayer Education shares are held by insiders. Comparatively, 15.0% of shares of all “General Education Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility & Risk
Strayer Education has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Strayer Education’s peers have a beta of 1.14, meaning that their average share price is 14% more volatile than the S&P 500.
Earnings and Valuation
This table compares Strayer Education and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Strayer Education||$449.07 million||$77.90 million||27.44|
|Strayer Education Competitors||$909.14 million||$144.34 million||4.53|
Strayer Education’s peers have higher revenue and earnings than Strayer Education. Strayer 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.
This table compares Strayer Education and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Strayer Education Competitors||0.80%||0.13%||2.03%|
Strayer Education peers beat Strayer Education on 8 of the 15 factors compared.
About Strayer Education
Strayer Education, Inc. is an education services holding company. The Company provides post-secondary education and other academic programs, through its subsidiaries, Strayer University (the University) and New York Code and Design Academy (NYCDA). As of December 31, 2016, the University offered undergraduate and graduate degree programs in business administration, accounting, information technology, education, health services administration, nursing, public administration and criminal justice at 74 physical campuses located in the Mid-Atlantic and Southern regions of the United States, and online. The University also offers an executive Master of Business Administration (MBA) online through its Jack Welch Management Institute. Its subsidiary, NYCDA, provides non-degree courses in Web and application software development, primarily at its campus in New York City. Each undergraduate degree program includes courses in oral and written communication skills, as well as mathematics.
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