Head-To-Head Survey: Service Corporation International (NYSE:SCI) & Grand Canyon Education (NASDAQ:LOPE)

Grand Canyon Education (NASDAQ:LOPE) and Service Corporation International (NYSE:SCI) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Analyst Ratings

This is a summary of current ratings and target prices for Grand Canyon Education and Service Corporation International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grand Canyon Education	0	2	3	0	2.60
Service Corporation International	0	1	3	0	2.75

Grand Canyon Education currently has a consensus price target of $161.67, indicating a potential upside of 6.69%. Service Corporation International has a consensus price target of $100.67, indicating a potential upside of 24.19%. Given Service Corporation International’s stronger consensus rating and higher probable upside, analysts clearly believe Service Corporation International is more favorable than Grand Canyon Education.

Risk and Volatility

Grand Canyon Education has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, Service Corporation International has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Profitability

This table compares Grand Canyon Education and Service Corporation International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grand Canyon Education	19.63%	36.62%	26.87%
Service Corporation International	12.30%	34.38%	2.91%

Institutional & Insider Ownership

94.2% of Grand Canyon Education shares are owned by institutional investors. Comparatively, 85.5% of Service Corporation International shares are owned by institutional investors. 2.1% of Grand Canyon Education shares are owned by company insiders. Comparatively, 3.4% of Service Corporation International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Grand Canyon Education and Service Corporation International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grand Canyon Education	$1.14 billion	3.46	$216.17 million	$8.27	18.32
Service Corporation International	$4.37 billion	2.53	$542.61 million	$3.83	21.16

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

Summary

Service Corporation International beats Grand Canyon Education on 7 of the 13 factors compared between the two stocks.

About Grand Canyon Education

Grand Canyon Education, Inc. provides education services to colleges and universities in the United States. It offers technology services, including learning management system, internal administration, infrastructure, and support services; academic services, such as program and curriculum, faculty and related training and development, class scheduling, and skills and simulation lab sites; and counseling services and support services comprising admission, financial aid, and field experience and other counseling services. The company also offers marketing and communication services that include lead acquisition, digital communications strategy, brand identity, media planning and strategy, video, business intelligence and data science, and market research services; and back-office services consisting of finance and accounting, human resources, audit, and procurement services. In addition, it provides education services to 25 university partners. Grand Canyon Education, Inc. was founded in 1949 and is headquartered in Phoenix, Arizona.

About Service Corporation International

Service Corp. International engages in the provision of funeral goods and services. It operates through the Funeral and Cemetery segments. The Funeral segment offers services related to cremations, including the use of home facilities and motor vehicles, arranging and directing services, removal, preparation, embalming, memorialization, and catering. The Cemetery segment provides property interment rights, including lawn crypts, mausoleum spaces, niches, and interment options. The company was founded by Robert L. Waltrip in July 1962 and is headquartered in Houston, TX.