ITT Educational Services (NYSE: ESI) and GP Strategies Corporation (NYSE:GPX) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitabiliy, institutional ownership, valuation and earnings.

Risk and Volatility

ITT Educational Services has a beta of 1.96, meaning that its stock price is 96% more volatile than the S&P 500. Comparatively, GP Strategies Corporation has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Earnings & Valuation

This table compares ITT Educational Services and GP Strategies Corporation’s gross revenue, earnings per share 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 $497.25 million 0.91 $38.74 million $1.22 22.25

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.

Profitability

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 4.13% 12.45% 6.61%

Insider & Institutional 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 company insiders. Comparatively, 25.7% of GP Strategies Corporation shares are held by company 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.

Analyst Ratings

This is a summary of recent ratings for ITT Educational Services and GP Strategies Corporation, as reported by MarketBeat.com.

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 0 0 2.00

GP Strategies Corporation has a consensus target price of $27.00, indicating a potential downside of 0.55%. Given GP Strategies Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe GP Strategies Corporation is more favorable than ITT Educational Services.

Summary

GP Strategies Corporation beats ITT Educational Services on 9 of the 10 factors compared between the two stocks.

About ITT Educational Services

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.

About GP Strategies Corporation

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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