Comparing Vitru (NASDAQ:VTRU) & Perdoceo Education (NASDAQ:PRDO)

Perdoceo Education (NASDAQ:PRDOGet Rating) and Vitru (NASDAQ:VTRUGet Rating) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Volatility and Risk

Perdoceo Education has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Vitru has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500.

Earnings & Valuation

This table compares Perdoceo Education and Vitru’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Perdoceo Education $693.03 million 1.00 $109.64 million $1.57 6.40
Vitru $116.98 million 3.05 $13.09 million $0.53 28.87

Perdoceo Education has higher revenue and earnings than Vitru. Perdoceo Education is trading at a lower price-to-earnings ratio than Vitru, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

88.0% of Perdoceo Education shares are held by institutional investors. Comparatively, 66.4% of Vitru shares are held by institutional investors. 2.9% of Perdoceo Education shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Perdoceo Education and Vitru, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Perdoceo Education 0 0 1 0 3.00
Vitru 0 0 1 0 3.00

Perdoceo Education currently has a consensus price target of $16.00, indicating a potential upside of 59.20%. Given Perdoceo Education’s higher possible upside, analysts plainly believe Perdoceo Education is more favorable than Vitru.

Profitability

This table compares Perdoceo Education and Vitru’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Perdoceo Education 16.03% 19.55% 15.11%
Vitru 11.05% 7.60% 4.58%

Summary

Perdoceo Education beats Vitru on 10 of the 12 factors compared between the two stocks.

About Perdoceo Education (Get Rating)

Perdoceo Education Corporation provides postsecondary education through online, campus-based, and blended learning programs in the United States. The company operates in two segments, Colorado Technical University and American InterContinental University. It offers academic programs in the career-oriented disciplines of business and management, nursing, healthcare management, computer science, engineering, information systems and technology, project management, cybersecurity, and criminal justice, as well as business studies, information technologies, education, and health sciences. The company also operates intellipath, a personalized learning platform; and a mobile application and two-way messaging platform. As of December 31, 2021, it had a total student enrollment of approximately 40,400 students. The company was formerly known as Career Education Corporation and changed its name to Perdoceo Education Corporation in January 2020. Perdoceo Education Corporation was incorporated in 1994 and is based in Schaumburg, Illinois.

About Vitru (Get Rating)

Vitru Limited, together with its subsidiaries, operates as a distance learning education company in the postsecondary digital education market in Brazil. It operates through three segments: Digital Education Undergraduate Courses, Continuing Education Courses, and On-Campus Undergraduate Courses. The company offers digital education undergraduate courses in hybrid methodology, which consists of weekly in-person meetings with on-site tutors. Its courses primarily comprise pedagogy, business administration, accounting, physical education, engineering, vocational education, and health-related courses. The company also offers continuing education courses primarily in pedagogy, finance, and business, as well as in other subjects, such as law, engineering, IT, and health-related courses through hybrid model, online, and on-campus. In addition, it operates 8 campuses that provides traditional on campus undergraduate courses, including business administration, accounting, physical education, engineering, law, and health-related courses. Vitru Limited was founded in 2014 and is headquartered in Florianópolis, Brazil.

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