Educational Development (EDUC) & Its Rivals Critical Comparison

Educational Development (NASDAQ:EDUC) is one of 259 publicly-traded companies in the “Media” industry, but how does it contrast to its rivals? We will compare Educational Development to similar businesses based on the strength of its profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Volatility and Risk

Educational Development has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Educational Development’s rivals have a beta of 0.96, indicating that their average share price is 4% less volatile than the S&P 500.

Earnings & Valuation

This table compares Educational Development and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Educational Development	$22.91 million	$2.33 million	5.70
Educational Development Competitors	$2.95 billion	-$7.90 million	17.60

Educational Development’s rivals have higher revenue, but lower earnings than Educational Development. Educational Development is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Educational Development and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Educational Development	1	0	0	0	1.00
Educational Development Competitors	2250	6873	10827	475	2.47

As a group, “Media” companies have a potential upside of 25.58%. Given Educational Development’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Educational Development has less favorable growth aspects than its rivals.

Profitability

This table compares Educational Development and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Educational Development	9.75%	-18.23%	-12.73%
Educational Development Competitors	-20.20%	-48.09%	-5.13%

Institutional & Insider Ownership

19.6% of Educational Development shares are held by institutional investors. Comparatively, 38.8% of shares of all “Media” companies are held by institutional investors. 11.9% of Educational Development shares are held by company insiders. Comparatively, 17.5% of shares of all “Media” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Educational Development rivals beat Educational Development on 9 of the 13 factors compared.

Educational Development Company Profile

Educational Development Corporation, a publishing company, operates as a publisher of educational children's books in the United States. It operates through two segments, PaperPie and Publishing. The company offers various books, including touchy-feely board books, activity books and flashcards, adventure and search books, art books, sticker books, and foreign language books, as well as internet-linked books comprising science and math titles, and chapter books and novels. It markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers, and its internal tele-sales group; and through a network of independent sales consultants through internet sales, direct sales, home shows, and book fairs. Educational Development Corporation was incorporated in 1965 and is headquartered in Tulsa, Oklahoma.