2U (NASDAQ: TWOU) is one of 183 publicly-traded companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its peers? We will compare 2U to similar businesses based on the strength of its analyst recommendations, earnings, valuation, dividends, risk, institutional ownership and profitability.

Earnings & Valuation

This table compares 2U and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
2U $205.86 million -$20.68 million -95.67
2U Competitors $2.81 billion $293.37 million 312.22

2U’s peers have higher revenue and earnings than 2U. 2U is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

2U has a beta of -0.18, indicating that its stock price is 118% less volatile than the S&P 500. Comparatively, 2U’s peers have a beta of 1.11, indicating that their average stock price is 11% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for 2U and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
2U 0 0 9 0 3.00
2U Competitors 714 4616 7340 163 2.54

2U presently has a consensus price target of $71.44, suggesting a potential upside of 11.46%. As a group, “IT Services & Consulting” companies have a potential upside of 2.58%. Given 2U’s stronger consensus rating and higher probable upside, equities research analysts clearly believe 2U is more favorable than its peers.

Institutional & Insider Ownership

63.3% of shares of all “IT Services & Consulting” companies are held by institutional investors. 8.4% of 2U shares are held by company insiders. Comparatively, 16.4% of shares of all “IT Services & Consulting” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares 2U and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
2U -12.49% -13.02% -9.97%
2U Competitors -20.66% -276.08% -4.77%

Summary

2U peers beat 2U on 7 of the 12 factors compared.

About 2U

2U, Inc. is a provider of an integrated solution consisting of cloud-based software-as-a-service (SaaS) combined with technology-enabled services (together, the Platform) that allows colleges and universities to deliver online degree programs. The Company’s SaaS technology consists of a learning environment (Online Campus), which acts as the hub for all student and faculty academic and social interaction, and a suite of integrated applications, which the Company uses to launch, operate and support the Company’s clients’ programs. The Company also provides a suite of technology-enabled services optimized with data analysis and machine learning techniques that support the complete lifecycle of a higher education program, including attracting students, advising students through the admissions application process, providing technical, success coaching and other support, facilitating accessibility to individuals with disabilities, and facilitating in-program field placements.

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