Analyzing Laureate Education (LAUR) & Bridgepoint Education (BPI)

Laureate Education (NASDAQ: LAUR) 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 earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a summary of recent recommendations and price targets for Laureate Education and Bridgepoint Education, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Laureate Education 0 3 10 0 2.77
Bridgepoint Education 0 1 0 0 2.00

Laureate Education presently has a consensus target price of $16.98, suggesting a potential upside of 54.80%. Bridgepoint Education has a consensus target price of $13.00, suggesting a potential upside of 40.39%. Given Laureate Education’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Laureate Education is more favorable than Bridgepoint Education.

Valuation & Earnings

This table compares Laureate Education and Bridgepoint Education’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Laureate Education $4.24 billion 0.44 $371.84 million ($1.52) -7.22
Bridgepoint Education $527.09 million 0.51 -$30.04 million $0.14 66.15

Laureate Education has higher revenue and earnings than Bridgepoint Education. Laureate Education is trading at a lower price-to-earnings ratio than Bridgepoint Education, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Laureate Education and Bridgepoint Education’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Laureate Education -1.47% -2.66% -0.45%
Bridgepoint Education 0.49% 12.78% 6.68%

Insider and Institutional Ownership

20.8% of Laureate Education shares are held by institutional investors. Comparatively, 91.3% of Bridgepoint Education shares are held by institutional investors. 13.1% of Laureate Education shares are held by insiders. Comparatively, 41.5% of Bridgepoint Education shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Bridgepoint Education beats Laureate Education on 7 of the 12 factors compared between the two stocks.

Laureate Education Company Profile

Laureate Education, Inc. provides higher education programs and services to students through an international network of licensed universities and higher education institutions (institutions). The Company’s programs are provided through institutions that are campus-based and Internet-based, or through electronically distributed educational programs (online). It offers its educational services through six segments: Brazil; Mexico; Andean and Iberian; Central America and United States (U.S.) Campuses; Online and Partnerships; and Europe, Middle East, Africa and Asia Pacific (EMEAA). Its institutions also offer an education that emphasizes professional-oriented fields of study with undergraduate and graduate degrees in a wide range of disciplines. As of June 30, 2017, the Company’s global network of 69 institutions comprised 57 institutions it owned or controlled, and an additional 12 institutions that it managed or with which it had other relationships.

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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