Critical Analysis: DeVry Education Group (ATGE) and Its Competitors
DeVry Education Group (NYSE: ATGE) is one of 20 public companies in the “General Education Services” industry, but how does it contrast to its peers? We will compare DeVry Education Group to similar companies based on the strength of its earnings, analyst recommendations, risk, institutional ownership, dividends, profitability and valuation.
DeVry Education Group pays an annual dividend of $0.18 per share and has a dividend yield of 0.5%. DeVry Education Group pays out 9.4% of its earnings in the form of a dividend. As a group, “General Education Services” companies pay a dividend yield of 1.5% and pay out 34.6% of their earnings in the form of a dividend.
Volatility and Risk
DeVry Education Group has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, DeVry Education Group’s peers have a beta of 1.14, suggesting that their average share price is 14% more volatile than the S&P 500.
Institutional & Insider Ownership
71.6% of shares of all “General Education Services” companies are held by institutional investors. 3.0% of DeVry Education Group shares are held by insiders. Comparatively, 15.0% of shares of all “General Education Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of current recommendations for DeVry Education Group and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|DeVry Education Group||0||2||2||0||2.50|
|DeVry Education Group Competitors||62||443||456||2||2.41|
DeVry Education Group presently has a consensus target price of $35.67, indicating a potential downside of 0.65%. As a group, “General Education Services” companies have a potential upside of 5.75%. Given DeVry Education Group’s peers higher probable upside, analysts plainly believe DeVry Education Group has less favorable growth aspects than its peers.
Valuation & Earnings
This table compares DeVry Education Group and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|DeVry Education Group||$1.81 billion||$313.39 million||18.80|
|DeVry Education Group Competitors||$909.14 million||$144.34 million||4.63|
DeVry Education Group has higher revenue and earnings than its peers. DeVry Education Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This table compares DeVry Education Group and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|DeVry Education Group||6.76%||10.93%||7.71%|
|DeVry Education Group Competitors||0.28%||-1.65%||1.17%|
DeVry Education Group beats its peers on 9 of the 15 factors compared.
About DeVry Education Group
Adtalem Global Education Inc., formerly DeVry Education Group Inc. (DeVry Group) is a global provider of educational services. DeVry Group’s focuses on empowering its students to achieve their educational and career goals. DeVry Group’s institutions offer a range of programs in healthcare, technology, business, accounting, finance and law. The Company operates in three segments: Medical and Healthcare; International and Professional Education, and Business, Technology and Management. Medical and Healthcare includes DeVry Medical International, Chamberlain College of Nursing (Chamberlain) and Carrington College. International and Professional Education consists of DeVry Brasil and Becker Professional Education. Business, Technology and Management consists of DeVry University. As of June 30, 2016, DMI operated three institutions: American University of the Caribbean School of Medicine (AUC), Ross University School of Medicine (RUSM) and Ross University School of Veterinary Medicine.
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