Zovio (ZVOI) versus Its Peers Critical Review

Insider & Institutional Ownership

0.1% of Zovio shares are owned by institutional investors. Comparatively, 37.3% of shares of all “Technology Services” companies are owned by institutional investors. 2.3% of Zovio shares are owned by company insiders. Comparatively, 21.0% of shares of all “Technology Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Zovio and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zovio	N/A	N/A	N/A
Zovio Competitors	-268.96%	-105.34%	-20.56%

Volatility & Risk

Zovio has a beta of 16.47, meaning that its share price is 1,547% more volatile than the S&P 500. Comparatively, Zovio’s competitors have a beta of -13.69, meaning that their average share price is 1,469% less volatile than the S&P 500.

Valuation & Earnings

This table compares Zovio and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Zovio	N/A	N/A	N/A
Zovio Competitors	$1.20 billion	$32.01 million	-17.13

Zovio’s competitors have higher revenue and earnings than Zovio. Zovio is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Zovio beats its competitors on 4 of the 7 factors compared.

About Zovio

Zovio, Inc. operates as an education technology services company that partners with higher education institutions and employers to deliver solutions and learning experiences. It provides student recruitment and enrollment systems, retention strategies, educational tools, and curriculums. The company was founded by Wayne Clugston and Andrew S. Clark in May 1999 and is headquartered in Chandler, AZ.