Comparing Universal Technical Institute (UTI) & Its Rivals

Universal Technical Institute (NYSE:UTI) is one of 166 public companies in the “Diversified Consumer Services” industry, but how does it contrast to its competitors? We will compare Universal Technical Institute to similar companies based on the strength of its risk, dividends, earnings, valuation, analyst recommendations, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Universal Technical Institute and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Technical Institute	0	3	4	0	2.57
Universal Technical Institute Competitors	1430	3425	5275	194	2.41

Universal Technical Institute currently has a consensus price target of $42.33, indicating a potential upside of 87.40%. As a group, “Diversified Consumer Services” companies have a potential upside of 64.24%. Given Universal Technical Institute’s stronger consensus rating and higher possible upside, research analysts plainly believe Universal Technical Institute is more favorable than its competitors.

Institutional and Insider Ownership

75.7% of Universal Technical Institute shares are held by institutional investors. Comparatively, 49.0% of shares of all “Diversified Consumer Services” companies are held by institutional investors. 9.8% of Universal Technical Institute shares are held by company insiders. Comparatively, 19.5% of shares of all “Diversified Consumer Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Universal Technical Institute and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Technical Institute	3.88%	10.18%	4.02%
Universal Technical Institute Competitors	-3.01%	-28.38%	2.46%

Volatility and Risk

Universal Technical Institute has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Universal Technical Institute’s competitors have a beta of 0.47, meaning that their average share price is 53% less volatile than the S&P 500.

Earnings and Valuation

This table compares Universal Technical Institute and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Universal Technical Institute	$883.60 million	$63.02 million	36.44
Universal Technical Institute Competitors	$3.54 billion	$219.82 million	11.87

Universal Technical Institute’s competitors have higher revenue and earnings than Universal Technical Institute. Universal Technical Institute is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Universal Technical Institute pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Universal Technical Institute pays out 12.9% of its earnings in the form of a dividend. As a group, “Diversified Consumer Services” companies pay a dividend yield of 6.0% and pay out 36.0% of their earnings in the form of a dividend.

Summary

Universal Technical Institute beats its competitors on 10 of the 15 factors compared.

About Universal Technical Institute

Universal Technical Institute, Inc. provides transportation, skilled trades, and healthcare education programs in the United States. The company operates in two segments, UTI and Concorde. It offers certificate, diploma, or degree programs under various brands, such as Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology. The company also provides manufacturer specific advanced training programs, including student paid electives at its campuses; and manufacturer or dealer sponsored training at various campuses and dedicated training centers. It serves students, partners, and communities by providing education and support services in various fields. Universal Technical Institute, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.