Reviewing Udemy (NASDAQ:UDMY) and Universal Technical Institute (NYSE:UTI)

Udemy (NASDAQ:UDMYGet Rating) and Universal Technical Institute (NYSE:UTIGet Rating) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, risk, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for Udemy and Universal Technical Institute, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Udemy 0 3 10 0 2.77
Universal Technical Institute 0 0 3 0 3.00

Udemy currently has a consensus price target of $30.00, indicating a potential upside of 139.81%. Universal Technical Institute has a consensus price target of $10.00, indicating a potential upside of 4.49%. Given Udemy’s higher probable upside, equities analysts plainly believe Udemy is more favorable than Universal Technical Institute.

Earnings & Valuation

This table compares Udemy and Universal Technical Institute’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Udemy $518.16 million 3.37 -$80.03 million N/A N/A
Universal Technical Institute $335.08 million 0.94 $14.58 million $0.39 24.54

Universal Technical Institute has lower revenue, but higher earnings than Udemy.

Insider & Institutional Ownership

0.5% of Udemy shares are owned by institutional investors. Comparatively, 69.2% of Universal Technical Institute shares are owned by institutional investors. 3.5% of Universal Technical Institute shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Udemy N/A N/A N/A
Universal Technical Institute 7.78% 27.11% 6.49%

Summary

Universal Technical Institute beats Udemy on 7 of the 11 factors compared between the two stocks.

About Udemy (Get Rating)

Udemy, Inc. operates a platform for teaching and learning skills in the United States and internationally. The company offers technical and business skills, and personal development courses for individual learners and enterprise customers. Its platform allows to access approximately 183,000 courses in 75 languages. The company was incorporated in 2010 and is headquartered in San Francisco, California.

About Universal Technical Institute (Get Rating)

Universal Technical Institute, Inc. provides transportation and technical training programs in the United States. The company provides postsecondary education for students seeking careers as professional automotive, diesel, collision repair, motorcycle, and marine technicians. It also offers certificate, diploma, or degree programs under various brands, such as Universal Technical Institute, Motorcycle Mechanics Institute and Marine Mechanics Institute, and NASCAR Technical Institute. In addition, the company 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, as well as offers programs for welding and computer numeric control machining. As of September 30, 2021, it operated 12 campuses. Universal Technical Institute, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.

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