Bridgepoint Education (NYSE: BPI) and RISE Education Cayman (NASDAQ:REDU) are both small-cap non-cyclical consumer goods & services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.
This table compares Bridgepoint Education and RISE Education Cayman’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|RISE Education Cayman||N/A||N/A||N/A|
Insider & Institutional Ownership
99.9% of Bridgepoint Education shares are owned by institutional investors. Comparatively, 4.7% of RISE Education Cayman shares are owned by institutional investors. 41.5% of Bridgepoint Education shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Bridgepoint Education and RISE Education Cayman’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bridgepoint Education||$527.09 million||0.39||-$30.04 million||$0.14||49.79|
|RISE Education Cayman||$104.87 million||8.59||$7.95 million||$0.27||60.67|
RISE Education Cayman has lower revenue, but higher earnings than Bridgepoint Education. Bridgepoint Education is trading at a lower price-to-earnings ratio than RISE Education Cayman, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for Bridgepoint Education and RISE Education Cayman, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|RISE Education Cayman||0||0||1||0||3.00|
Bridgepoint Education presently has a consensus target price of $13.00, suggesting a potential upside of 86.51%. RISE Education Cayman has a consensus target price of $15.50, suggesting a potential downside of 5.37%. Given Bridgepoint Education’s higher probable upside, equities research analysts clearly believe Bridgepoint Education is more favorable than RISE Education Cayman.
Bridgepoint Education beats RISE Education Cayman on 7 of the 13 factors compared between the two stocks.
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.
RISE Education Cayman Company Profile
RISE Education Cayman Ltd is a holding company. The Company, through its subsidiaries, offers after-school English teaching and tutoring services to students aged three to 18. It operates in China’s junior English Language Training (ELT) market. Its offers three flagship courses, including Rise Start, Rise On and Rise Up, that are designed for students aged three to six, seven to twelve and 13 to 18, respectively. As of June 30, 2017, the Company had a network of 246 learning centers across 80 cities in China, among which 56 were self-owned centers and 190 centers were franchised learning centers. Its suite of products comprises both online and offline coursework. Its also offers a series of complementary products to students from both self-owned learning centers and franchised learning centers, including online products Can-Talk and Rise Library Online, and offline products Rise Camp, Rise Workshop and Rise Overseas Study Tour.
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