Adtalem Global Education (NYSE: ATGE) and Johnson Outdoors (NASDAQ:JOUT) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.
This table compares Adtalem Global Education and Johnson Outdoors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Adtalem Global Education||0.86%||9.92%||6.99%|
This is a breakdown of recent ratings and price targets for Adtalem Global Education and Johnson Outdoors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Adtalem Global Education||0||2||1||0||2.33|
Adtalem Global Education presently has a consensus target price of $50.33, indicating a potential upside of 7.66%. Johnson Outdoors has a consensus target price of $73.50, indicating a potential upside of 18.34%. Given Johnson Outdoors’ stronger consensus rating and higher probable upside, analysts plainly believe Johnson Outdoors is more favorable than Adtalem Global Education.
Insider and Institutional Ownership
62.7% of Johnson Outdoors shares are owned by institutional investors. 3.0% of Adtalem Global Education shares are owned by insiders. Comparatively, 18.5% of Johnson Outdoors shares are owned by 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.
Johnson Outdoors pays an annual dividend of $0.40 per share and has a dividend yield of 0.6%. Adtalem Global Education does not pay a dividend. Johnson Outdoors pays out 12.8% of its earnings in the form of a dividend.
Volatility & Risk
Adtalem Global Education has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Johnson Outdoors has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.
Earnings and Valuation
This table compares Adtalem Global Education and Johnson Outdoors’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Adtalem Global Education||$1.81 billion||1.56||$122.28 million||$0.16||292.19|
|Johnson Outdoors||$490.57 million||1.26||$35.15 million||$3.12||19.91|
Adtalem Global Education has higher revenue and earnings than Johnson Outdoors. Johnson Outdoors is trading at a lower price-to-earnings ratio than Adtalem Global Education, indicating that it is currently the more affordable of the two stocks.
Johnson Outdoors beats Adtalem Global Education on 10 of the 16 factors compared between the two stocks.
About Adtalem Global Education
Adtalem Global Education Inc., formerly DeVry Education Group Inc. (DeVry Group) is a global provider of educational services. DeVry Group’s focuses on empowering its students to achieve their educational and career goals. DeVry Group’s institutions offer a range of programs in healthcare, technology, business, accounting, finance and law. The Company operates in three segments: Medical and Healthcare; International and Professional Education, and Business, Technology and Management. Medical and Healthcare includes DeVry Medical International, Chamberlain College of Nursing (Chamberlain) and Carrington College. International and Professional Education consists of DeVry Brasil and Becker Professional Education. Business, Technology and Management consists of DeVry University. As of June 30, 2016, DMI operated three institutions: American University of the Caribbean School of Medicine (AUC), Ross University School of Medicine (RUSM) and Ross University School of Veterinary Medicine.
About Johnson Outdoors
Johnson Outdoors Inc. is a manufacturer and marketer of branded seasonal, outdoor recreation products. The Company operates through four segments: Marine Electronics, Outdoor Equipment, Watercraft and Diving. Its Marine Electronics segment’s brands are Minn Kota, Humminbird and Cannon. Its Outdoor Equipment segment’s brands are Eureka!, Jetboil and Silva. Its Watercraft segment designs and markets Necky sea touring kayaks; sit on top Ocean Kayaks, and Old Town canoes and kayaks for family recreation, touring, angling and tripping. The Company manufactures and markets underwater diving products for recreational divers, which it sells and distributes under the SCUBAPRO brand name. It markets a line of underwater diving and snorkeling equipment, including regulators, buoyancy compensators, dive computers and gauges, wetsuits, masks, fins, snorkels and accessories. The Company’s products are used for fishing from a boat, diving, paddling, hiking and camping.
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