Comparing Carriage Services (NYSE:CSV) & Universal Technical Institute (NYSE:UTI)

Carriage Services (NYSE:CSV) and Universal Technical Institute (NYSE:UTI) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Carriage Services and Universal Technical Institute, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carriage Services	1	1	3	0	2.40
Universal Technical Institute	0	2	4	0	2.67

Carriage Services currently has a consensus target price of $51.00, indicating a potential upside of 54.56%. Universal Technical Institute has a consensus target price of $43.83, indicating a potential upside of 103.36%. Given Universal Technical Institute’s stronger consensus rating and higher probable upside, analysts plainly believe Universal Technical Institute is more favorable than Carriage Services.

Insider and Institutional Ownership

66.5% of Carriage Services shares are held by institutional investors. Comparatively, 75.7% of Universal Technical Institute shares are held by institutional investors. 2.7% of Carriage Services shares are held by company insiders. Comparatively, 9.8% of Universal Technical Institute shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Carriage Services has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Universal Technical Institute has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Profitability

This table compares Carriage Services and Universal Technical Institute’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carriage Services	10.69%	19.23%	3.71%
Universal Technical Institute	3.88%	10.18%	4.02%

Valuation and Earnings

This table compares Carriage Services and Universal Technical Institute”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carriage Services	$417.44 million	1.25	$51.51 million	$2.79	11.83
Universal Technical Institute	$835.62 million	1.42	$63.02 million	$0.62	34.77

Universal Technical Institute has higher revenue and earnings than Carriage Services. Carriage Services is trading at a lower price-to-earnings ratio than Universal Technical Institute, indicating that it is currently the more affordable of the two stocks.

Summary

Universal Technical Institute beats Carriage Services on 11 of the 14 factors compared between the two stocks.

About Carriage Services

Carriage Services, Inc. provides funeral and cemetery services, and merchandise in the United States. It operates in two segments, Funeral Home Operations and Cemetery Operations. The Funeral Home Operations segment provides consultation services; funeral home facilities for visitation and memorial services; transportation services; removal and preparation of remains; sale of caskets and urns; cremation services; and related funeral merchandise. The Cemetery Operations segment sells interment rights for grave sites, lawn crypts, mausoleum spaces, and niches; related cemetery merchandise, including memorial markers, outer burial containers, and monuments; and interments, inurnments, and installation of cemetery merchandise services. Carriage Services, Inc. was founded in 1991 and is based in Houston, Texas.

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.