Contrasting Educational Development (EDUC) and Its Rivals

Educational Development (NASDAQ:EDUC) is one of 257 public companies in the “Media” industry, but how does it contrast to its rivals? We will compare Educational Development to similar companies based on the strength of its analyst recommendations, valuation, institutional ownership, profitability, earnings, risk and dividends.

Analyst Recommendations

This is a summary of current ratings and target prices for Educational Development and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Educational Development	0	1	0	0	2.00
Educational Development Competitors	2276	6837	10678	479	2.46

As a group, “Media” companies have a potential upside of 24.38%. Given Educational Development’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Educational Development has less favorable growth aspects than its rivals.

Volatility & Risk

Educational Development has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Educational Development’s rivals have a beta of 0.96, indicating that their average stock price is 4% less volatile than the S&P 500.

Profitability

This table compares Educational Development and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Educational Development	9.75%	-18.23%	-12.73%
Educational Development Competitors	-19.47%	-47.74%	-5.03%

Earnings and Valuation

This table compares Educational Development and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Educational Development	$22.91 million	$2.33 million	5.65
Educational Development Competitors	$3.02 billion	$35.25 million	4.99

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

Institutional and Insider Ownership

19.6% of Educational Development shares are owned by institutional investors. Comparatively, 38.2% of shares of all “Media” companies are owned by institutional investors. 11.9% of Educational Development shares are owned by company insiders. Comparatively, 17.7% of shares of all “Media” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Educational Development rivals beat Educational Development on 9 of the 13 factors compared.

About Educational Development

Educational Development Corporation, a publishing company, operates as a publisher of educational children's books in the United States. It operates through two segments, PaperPie and Publishing. The company offers various books, including touchy-feely board books, activity books and flashcards, adventure and search books, art books, sticker books, and foreign language books, as well as internet-linked books comprising science and math titles, and chapter books and novels. It markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers, and its internal tele-sales group; and through a network of independent sales consultants through internet sales, direct sales, home shows, and book fairs. Educational Development Corporation was incorporated in 1965 and is headquartered in Tulsa, Oklahoma.