American Public Education (NASDAQ: APEI) and Bridgepoint Education (NYSE:BPI) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.
Valuation and Earnings
This table compares American Public Education and Bridgepoint Education’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| American Public Education | $300.31 million | 0.98 | $56.56 million | $0.95 | 19.05 |
| Bridgepoint Education | $510.19 million | 0.50 | $33.22 million | ($0.06) | -145.81 |
American Public Education has higher revenue, but lower earnings than Bridgepoint Education. Bridgepoint Education is trading at a lower price-to-earnings ratio than American Public Education, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares American Public Education and Bridgepoint Education’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Public Education | 5.18% | 7.87% | 6.55% |
| Bridgepoint Education | -1.39% | 9.16% | 5.13% |
Insider and Institutional Ownership
93.6% of American Public Education shares are held by institutional investors. Comparatively, 91.9% of Bridgepoint Education shares are held by institutional investors. 3.6% of American Public Education shares are held by insiders. Comparatively, 41.5% of Bridgepoint Education shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
American Public Education has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Bridgepoint Education has a beta of 2.17, meaning that its share price is 117% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings for American Public Education and Bridgepoint Education, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Public Education | 0 | 1 | 0 | 0 | 2.00 |
| Bridgepoint Education | 0 | 1 | 0 | 0 | 2.00 |
American Public Education presently has a consensus price target of $19.00, suggesting a potential upside of 4.97%. Bridgepoint Education has a consensus price target of $14.00, suggesting a potential upside of 60.00%. Given Bridgepoint Education’s higher probable upside, analysts plainly believe Bridgepoint Education is more favorable than American Public Education.
Summary
American Public Education beats Bridgepoint Education on 6 of the 11 factors compared between the two stocks.
American Public Education Company Profile
American Public Education, Inc. provides online and on-campus postsecondary education. The Company provides postsecondary education through its subsidiary institutions, American Public University System, Inc. (APUS) and Hondros College of Nursing (HCON). It operates through two segments: American Public Education Segment, which consists of the operational activities of APUS, other corporate activities, and minority investments, and Hondros College of Nursing Segment, which consists of the operational activities of HCON. APUS provides online postsecondary education to approximately 88,700 adult learners serving the needs of the military and public safety communities as of December 31, 2016. As of December 31, 2016, HCON provided nursing education to approximately 1,300 students across five campuses in the State of Ohio, as well as online. It offers a Diploma in Practical Nursing and an Associate Degree in Nursing. As of December 31, 2016, the Company had approximately 90,000 students.
Bridgepoint Education Company Profile
Bridgepoint Education, Inc. (Bridgepoint) is a provider of postsecondary education services. The Company’s academic institutions include Ashford University and University of the Rockies. Bridgepoint’s institutions conduct ongoing faculty and student assessment processes, and provide a range of student services. It offers Constellation, its learning platform, Waypoint Outcomes, its assessment software, and its mobile application technology. As of December 31, 2016, its institutions offered over 1,200 courses and over 80 degree programs. Ashford University offers associate’s, bachelor’s and master’s degree programs online. Ashford University comprises four colleges: the Forbes School of Business and Technology, the College of Education, the College of Health, Human Services and Science, and the College of Liberal Arts. University of the Rockies is a graduate institution that offers master’s and doctoral degree programs in the social and behavioral sciences.
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