WW International (NASDAQ:WW – Get Free Report) and Perdoceo Education (NASDAQ:PRDO – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
86.2% of WW International shares are owned by institutional investors. Comparatively, 93.5% of Perdoceo Education shares are owned by institutional investors. 0.4% of WW International shares are owned by company insiders. Comparatively, 1.5% of Perdoceo Education shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares WW International and Perdoceo Education”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WW International | $710.64 million | 0.17 | -$112.25 million | ($10.13) | -1.20 |
| Perdoceo Education | $846.10 million | 2.22 | $159.91 million | $2.74 | 10.95 |
Perdoceo Education has higher revenue and earnings than WW International. WW International 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 Ratings
This is a summary of recent recommendations for WW International and Perdoceo Education, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WW International | 1 | 1 | 1 | 0 | 2.00 |
| Perdoceo Education | 0 | 1 | 2 | 0 | 2.67 |
WW International presently has a consensus price target of $25.00, suggesting a potential upside of 106.10%. Perdoceo Education has a consensus price target of $44.00, suggesting a potential upside of 46.72%. Given WW International’s higher probable upside, equities research analysts clearly believe WW International is more favorable than Perdoceo Education.
Profitability
This table compares WW International and Perdoceo Education’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| WW International | -56.84% | N/A | -0.32% |
| Perdoceo Education | 20.62% | 18.93% | 14.66% |
Risk and Volatility
WW International has a beta of 1.73, indicating that its stock price is 73% more volatile than the S&P 500. Comparatively, Perdoceo Education has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.
Summary
Perdoceo Education beats WW International on 12 of the 14 factors compared between the two stocks.
About WW International
WW International, Inc. provides weight management products and services worldwide. It offers a range of nutritional, activity, behavioral, and lifestyle tools and approaches products and services. The company also provides various digital subscription products to wellness and weight management business, which provide interactive and personalized resources that allow users to follow its weight management program through its app and web-based platform; and allows members to inspire and support each other by sharing their experiences with other people on weight health journeys. In addition, it licenses its trademarks and other intellectual property in food, beverages, and other relevant consumer products and services, as well as provides publishing services. The company was formerly known as Weight Watchers International, Inc. and changed its name to WW International, Inc. in September 2019. WW International, Inc. was founded in 1961 and is headquartered in New York, New York.
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.
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