Financial Survey: Gravitas Education (NYSE:GEHI) & Perdoceo Education (NASDAQ:PRDO)

Gravitas Education (NYSE:GEHI) and Perdoceo Education (NASDAQ:PRDO) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings for Gravitas Education and Perdoceo Education, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gravitas Education	0	0	0	0	N/A
Perdoceo Education	0	0	1	0	3.00

Perdoceo Education has a consensus price target of $23.00, indicating a potential upside of 35.77%. Given Perdoceo Education’s higher probable upside, analysts plainly believe Perdoceo Education is more favorable than Gravitas Education.

Institutional and Insider Ownership

8.5% of Gravitas Education shares are owned by institutional investors. Comparatively, 93.4% of Perdoceo Education shares are owned by institutional investors. 64.1% of Gravitas Education shares are owned by company insiders. Comparatively, 2.7% of Perdoceo Education shares are owned 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.

Volatility and Risk

Gravitas Education has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Perdoceo Education has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gravitas Education	N/A	N/A	N/A
Perdoceo Education	19.83%	18.74%	14.72%

Valuation and Earnings

This table compares Gravitas Education and Perdoceo Education’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gravitas Education	$50.01 million	0.62	-$41.37 million	N/A	N/A
Perdoceo Education	$738.23 million	1.51	$95.87 million	$2.15	7.88

Perdoceo Education has higher revenue and earnings than Gravitas Education.

Summary

Perdoceo Education beats Gravitas Education on 10 of the 11 factors compared between the two stocks.

About Gravitas Education

Gravitas Education Holdings, Inc. provides early childhood education services in the People's Republic of China. It operates play-and-learn centers that offer services for the joint participation of 0-6-year-old children and their adult family members to promote children's development, foster bonding with family, and prepare them for their entry into kindergartens and primary schools. The company also operates student care centers; teaching facilities; and provides course content, training, support and guidance, and other services to franchisees and licensees. In addition, it develops and sells educational products and services; and distributes merchandise, such as teaching aids, educational toys, at-home educational products, and school uniforms through franchisees and other business partners, as well as directly to a market of families. Further, the company operates Qingtian Youpin, an e-commerce platform for maternity and children's products. The company was formerly known as RYB Education, Inc. and changed its name to Gravitas Education Holdings, Inc. in May 2022. Gravitas Education Holdings, Inc. was founded in 1998 and is based in Beijing, China.

About Perdoceo Education

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 The American InterContinental University System. 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. The company was formerly known as Career Education Corporation and changed its name to Perdoceo Education Corporation in January 2020. The company was incorporated in 1994 and is based in Schaumburg, Illinois.