Head to Head Review: Lixiang Education (NASDAQ:LXEH) & Universal Technical Institute (NYSE:UTI)

Lixiang Education (NASDAQ:LXEH) and Universal Technical Institute (NYSE:UTI) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Valuation and Earnings

This table compares Lixiang Education and Universal Technical Institute”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lixiang Education	$4.41 million	0.03	-$17.43 million	N/A	N/A
Universal Technical Institute	$835.62 million	2.65	$63.02 million	$0.77	52.33

Universal Technical Institute has higher revenue and earnings than Lixiang Education.

Profitability

This table compares Lixiang Education and Universal Technical Institute’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lixiang Education	N/A	N/A	N/A
Universal Technical Institute	4.91%	13.02%	5.25%

Volatility & Risk

Lixiang Education has a beta of -0.25, indicating that its stock price is 125% less volatile than the S&P 500. Comparatively, Universal Technical Institute has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Lixiang Education and Universal Technical Institute, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lixiang Education	1	0	0	0	1.00
Universal Technical Institute	0	2	3	0	2.60

Universal Technical Institute has a consensus price target of $44.25, indicating a potential upside of 9.83%. Given Universal Technical Institute’s stronger consensus rating and higher possible upside, analysts clearly believe Universal Technical Institute is more favorable than Lixiang Education.

Institutional and Insider Ownership

0.5% of Lixiang Education shares are held by institutional investors. Comparatively, 75.7% of Universal Technical Institute shares are held by institutional investors. 75.0% of Lixiang Education shares are held by insiders. Comparatively, 9.8% of Universal Technical Institute shares are held by 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

Universal Technical Institute beats Lixiang Education on 11 of the 12 factors compared between the two stocks.

About Lixiang Education

Lixiang Education Holding Co., Ltd. provides primary and middle school education services from grade 1 to grade 9 in the People's Republic of China. As of December 31, 2020, the company operated two campuses, including Baiyun Campus and Yijing Campus. It also engages in the operation of food procurement. The company was formerly known as Lianwai Education Group Limited and changed its name to Lixiang Education Holding Co., Ltd. in May 26, 2020. The company was founded in 2001 and is headquartered in Lishui, the People's Republic of China.

About Universal Technical Institute

Universal Technical Institute, Inc. provides transportation, skilled trades, and healthcare education programs in the United States. The company operates in two segments, UTI and Concorde. It offers certificate, diploma, or degree programs under various brands, such as Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology. The company also provides manufacturer specific advanced training programs, including student paid electives at its campuses; and manufacturer or dealer sponsored training at various campuses and dedicated training centers. It serves students, partners, and communities by providing education and support services in various fields. Universal Technical Institute, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.