Strategic Education (NASDAQ:STRA – Get Free Report) and Regis (NASDAQ:RGS – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.
Insider & Institutional Ownership
93.3% of Strategic Education shares are held by institutional investors. Comparatively, 31.5% of Regis shares are held by institutional investors. 3.6% of Strategic Education shares are held by insiders. Comparatively, 4.8% of Regis shares are held 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.
Analyst Ratings
This is a breakdown of current ratings for Strategic Education and Regis, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Strategic Education | 0 | 3 | 2 | 0 | 2.40 |
| Regis | 0 | 1 | 1 | 0 | 2.50 |
Profitability
This table compares Strategic Education and Regis’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Strategic Education | 10.46% | 8.98% | 7.11% |
| Regis | 3.09% | 4.10% | 1.36% |
Valuation and Earnings
This table compares Strategic Education and Regis”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Strategic Education | $1.27 billion | 1.44 | $126.61 million | $6.00 | 13.73 |
| Regis | $224.49 million | 0.32 | $123.54 million | $2.42 | 11.85 |
Strategic Education has higher revenue and earnings than Regis. Regis is trading at a lower price-to-earnings ratio than Strategic Education, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Strategic Education has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, Regis has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.
Summary
Strategic Education beats Regis on 10 of the 14 factors compared between the two stocks.
About Strategic Education
Strategic Education, Inc., through its subsidiaries, provides education services through campus-based and online post-secondary education, and programs to develop job-ready skills. The company operates through U.S. Higher Education, Australia/New Zealand, and Education Technology Services segments. It operates Strayer University that offers undergraduate and graduate degree programs in business, criminal justice, education, health services, information technology, and public administration at physical campuses located in the eastern United States, as well as through online; non-degree web and mobile application development courses through Hackbright Academy and Devmountain; and MBA online through its Jack Welch Management Institute. In addition, the company operates Capella University that provides post-secondary education; Torrens University, which offers undergraduate, graduate, higher degree by research, and specialized degree courses primarily in business, design and creative technology, health, hospitality, and education fields through online and on physical campuses located in Australia; Think Education, a vocational training organization; and Media Design School, which provides industry-endorsed courses in 3D animation and visual effects, game art and programming, graphic and motion design, digital media artificial intelligence, and creative advertising in New Zealand. It also offers Workforce Edge, a platform to employers that provides education benefits administration solutions; and Sophia Learning, which enables lower cost education benefits programs. Strategic Education, Inc. was founded in 1892 and is headquartered in Herndon, Virginia.
About Regis
Regis Corporation owns, operates, and franchises hairstyling and hair care salons in the United States, the United Kingdom, Canada, and Puerto Rico. The company operates in two segments, Franchise Salons and Company-owned Salons. Its salons provide haircutting and styling, including shampooing and conditioning; hair coloring; and other services, as well as sells various hair care and other beauty products. The company also offers OpenSalon Pro, a back-office salon management system; and Opensalon mobile application. Regis Corporation operates its salons primarily under the SmartStyle, Supercuts, Cost Cutters, Roosters, and First Choice Haircutters names. As of June 30, 2021, the company operated 5,917 salons, such as 5,563 franchised salons, 276 company-owned salons, and 78 non-controlling ownership salons. It also operates accredited cosmetology schools. The company was founded in 1922 and is headquartered in Minneapolis, Minnesota.
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