CAE (CAE) versus Universal Technical Institute (UTI) Critical Analysis
Universal Technical Institute (NYSE: UTI) and CAE (NYSE:CAE) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitabiliy and institutional ownership.
CAE pays an annual dividend of $0.24 per share and has a dividend yield of 1.4%. Universal Technical Institute does not pay a dividend. CAE pays out 33.8% of its earnings in the form of a dividend.
This table compares Universal Technical Institute and CAE’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Universal Technical Institute||-4.87%||-6.33%||-2.99%|
Risk & Volatility
Universal Technical Institute has a beta of 3.52, indicating that its share price is 252% more volatile than the S&P 500. Comparatively, CAE has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.
This is a summary of recent ratings and target prices for Universal Technical Institute and CAE, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Universal Technical Institute||0||0||0||0||N/A|
CAE has a consensus target price of $19.17, indicating a potential upside of 12.75%. Given CAE’s higher possible upside, analysts plainly believe CAE is more favorable than Universal Technical Institute.
Valuation and Earnings
This table compares Universal Technical Institute and CAE’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Universal Technical Institute||$335.86 million||0.27||$9.65 million||($0.87)||-4.25|
|CAE||$2.15 billion||2.12||$402.38 million||$0.71||23.94|
CAE has higher revenue and earnings than Universal Technical Institute. Universal Technical Institute is trading at a lower price-to-earnings ratio than CAE, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
60.3% of Universal Technical Institute shares are held by institutional investors. Comparatively, 56.9% of CAE shares are held by institutional investors. 28.4% of Universal Technical Institute shares are held by insiders. Comparatively, 18.3% of CAE shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
CAE beats Universal Technical Institute on 10 of the 14 factors compared between the two stocks.
Universal Technical Institute Company Profile
Universal Technical Institute, Inc. is a provider of postsecondary education for students seeking careers as professional automotive, diesel, collision repair, motorcycle and marine technicians as measured by total average undergraduate full-time enrollment and graduates. The Company offers undergraduate degree or diploma programs at approximately 12 campuses across the United States under the banner of various brands, including Universal Technical Institute (UTI), Motorcycle Mechanics Institute and Marine Mechanics Institute (collectively, MMI) and NASCAR Technical Institute (NASCAR Tech). The Company also offers manufacturer specific advanced training (MSAT) programs, including student-paid electives, at its campuses and manufacturer or dealer sponsored training at certain campuses and dedicated training centers. UTI offers automotive, diesel and industrial, and collision repair and refinishing programs.
CAE Company Profile
CAE Inc. provides training for the civil aviation, defense and security, and healthcare markets. The Company designs and integrates training solutions. It operates through three segments: Civil Aviation Training Solutions, Defense and Security, and Healthcare. The Company provides training solutions for flight, cabin, maintenance and ground personnel in commercial, business and helicopter aviation, a range of flight simulation training devices, as well as ab initio pilot training and crew sourcing services. The Company is a training systems integrator for defense forces across the air, land and sea domains, and for government and civil security organizations responsible for public safety. The Company designs, manufactures and markets simulators, simulation center management solutions and courseware for training of medical and allied healthcare students and clinicians in educational institutions, hospitals and defense organizations across the world.
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