ITT Educational Services (NYSE: ESI) and GP Strategies Corporation (NYSE:GPX) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitabiliy and dividends.
Institutional & Insider Ownership
62.7% of ITT Educational Services shares are held by institutional investors. Comparatively, 87.8% of GP Strategies Corporation shares are held by institutional investors. 3.8% of ITT Educational Services shares are held by insiders. Comparatively, 25.7% of GP Strategies Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares ITT Educational Services and GP Strategies Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ITT Educational Services||2.44%||10.57%||2.86%|
|GP Strategies Corporation||4.27%||12.56%||6.67%|
This is a summary of recent ratings and price targets for ITT Educational Services and GP Strategies Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ITT Educational Services||2||0||0||0||1.00|
|GP Strategies Corporation||0||1||1||0||2.50|
GP Strategies Corporation has a consensus target price of $29.50, suggesting a potential upside of 5.55%. Given GP Strategies Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe GP Strategies Corporation is more favorable than ITT Educational Services.
Risk and Volatility
ITT Educational Services has a beta of 1.96, suggesting that its stock price is 96% more volatile than the S&P 500. Comparatively, GP Strategies Corporation has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.
Valuation and Earnings
This table compares ITT Educational Services and GP Strategies Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ITT Educational Services||N/A||N/A||N/A||$0.86||0.42|
|GP Strategies Corporation||$502.87 million||0.93||$39.32 million||$1.28||21.84|
GP Strategies Corporation has higher revenue and earnings than ITT Educational Services. ITT Educational Services is trading at a lower price-to-earnings ratio than GP Strategies Corporation, indicating that it is currently the more affordable of the two stocks.
GP Strategies Corporation beats ITT Educational Services on 10 of the 11 factors compared between the two stocks.
ITT Educational Services Company Profile
ITT Educational Services, Inc. is a provider of postsecondary degree programs in the United States. The Company offers master, bachelor and associate degree programs to over 45,000 students, and short-term information technology and business learning solutions for career advancers and other professionals. It has approximately 138 campus locations in over 40 states. It offers online programs to students in all over 50 states. It designs its education programs, after consultation with employers and other constituents, to allow graduates prepare for careers in different fields involving their areas of study. It provides career-oriented education programs under the ITT Technical Institute name and the Daniel Webster College (DWC) name. The ITT Technical Institutes offers over 50 education programs in various fields of study across business, drafting and design, electronics technology, criminal justice, information technology (IT), and Breckinridge School of nursing and health sciences.
GP Strategies Corporation Company Profile
GP Strategies Corporation (GP Strategies) is a global performance improvement solutions provider of sales and technical training, e-learning solutions, management consulting and engineering services. The Company operates in five segments: Learning Solutions, Professional & Technical Services, Sandy Training & Marketing, RWD and Energy Services. Its clients include companies and governmental and other commercial customers in a variety of industries. It serves companies in the automotive, steel, oil and gas, power, chemical, electronics and technology, manufacturing, software, financial, retail, healthcare and food and beverage industries, as well as government agencies. On December 31, 2011, GP Strategies Corporation merged with and into its operating subsidiary, General Physics Corporation (General Physics). In April 2014, the Company acquired Effective-People and Effective-Learning companies.
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