Analyzing Coursera (NYSE:COUR) & Perdoceo Education (NASDAQ:PRDO)

Coursera (NYSE:COUR) and Perdoceo Education (NASDAQ:PRDO) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Insider and Institutional Ownership

89.5% of Coursera shares are owned by institutional investors. Comparatively, 93.5% of Perdoceo Education shares are owned by institutional investors. 16.3% of Coursera shares are owned by insiders. Comparatively, 1.5% of Perdoceo Education shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Coursera	-15.39%	-1.72%	-1.07%
Perdoceo Education	20.62%	18.93%	14.66%

Volatility & Risk

Coursera has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Perdoceo Education has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Earnings & Valuation

This table compares Coursera and Perdoceo Education”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coursera	$757.50 million	1.82	-$51.00 million	($0.67)	-7.78
Perdoceo Education	$846.10 million	2.44	$159.91 million	$2.74	12.05

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

Analyst Recommendations

This is a summary of current ratings and target prices for Coursera and Perdoceo Education, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coursera	1	4	7	0	2.50
Perdoceo Education	0	1	2	0	2.67

Coursera presently has a consensus target price of $8.55, suggesting a potential upside of 63.86%. Perdoceo Education has a consensus target price of $44.00, suggesting a potential upside of 33.25%. Given Coursera’s higher probable upside, equities analysts clearly believe Coursera is more favorable than Perdoceo Education.

Summary

Perdoceo Education beats Coursera on 10 of the 14 factors compared between the two stocks.

About Coursera

Coursera, Inc. operates an online educational content platform in the United States, Europe, Africa, the Asia Pacific, the Middle East, and internationally. It operates in three segments: Consumer, Enterprise, and Degrees. The company offers guided projects, courses, and specializations, as well as online degrees; and certificates for entry-level professional, non-entry level professional, university, and MasterTrack. It offers its products to individuals, enterprise, business, campus, and government. The company was formerly known as Dkandu, Inc. and changed its name to Coursera, Inc. in April 2012. Coursera, Inc. was incorporated in 2011 and is headquartered in Mountain View, California.

About Perdoceo Education

Perdoceo Education Corporation provides postsecondary education through online, campus-based, and blended learning programs in the United States. It operates in two segments, Colorado Technical University and The American InterContinental University System. The Colorado Technical University segment offers academic programs, such as business and management, nursing, healthcare management, computer science, engineering, information systems and technology, project management, cybersecurity, and criminal justice. The American InterContinental University System segment provides academic programs, including business studies, information technologies, education, and health sciences. The company also offers non-degree and professional development programs. In addition, it operates intellipath, a learning platform used to educate students; 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. Perdoceo Education Corporation was incorporated in 1994 and is headquartered in Schaumburg, Illinois.