Educational Development (EDUC) versus Its Rivals Financial Analysis

Educational Development (NASDAQ:EDUC) is one of 259 public companies in the “Media” industry, but how does it contrast to its competitors? We will compare Educational Development to related businesses based on the strength of its earnings, dividends, institutional ownership, profitability, risk, valuation and analyst recommendations.

Risk and Volatility

Educational Development has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Educational Development’s competitors have a beta of 0.96, meaning that their average stock price is 4% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Educational Development and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Educational Development	1	0	0	0	1.00
Educational Development Competitors	2276	6891	10854	477	2.47

As a group, “Media” companies have a potential upside of 23.49%. Given Educational Development’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Educational Development has less favorable growth aspects than its competitors.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Educational Development	$20.56 million	$2.33 million	5.65
Educational Development Competitors	$3.30 billion	-$7.90 million	14.99

Educational Development’s competitors have higher revenue, but lower earnings than Educational Development. Educational Development is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Educational Development	9.75%	-18.23%	-12.73%
Educational Development Competitors	-20.08%	-47.96%	-5.10%

Dividends

Educational Development pays an annual dividend of $0.10 per share and has a dividend yield of 7.7%. Educational Development pays out 43.5% of its earnings in the form of a dividend. As a group, “Media” companies pay a dividend yield of 5.1% and pay out 105.1% of their earnings in the form of a dividend. Educational Development is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

19.6% of Educational Development shares are held by institutional investors. Comparatively, 38.4% of shares of all “Media” companies are held by institutional investors. 11.9% of Educational Development shares are held by insiders. Comparatively, 18.0% of shares of all “Media” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Educational Development competitors beat Educational Development on 9 of the 15 factors compared.

About Educational Development

Educational Development Corporation, a publishing company, operates as a publisher of educational children's books in the United States. It operates through two segments, PaperPie and Publishing. The company offers various books, including touchy-feely board books, activity books and flashcards, adventure and search books, art books, sticker books, and foreign language books, as well as internet-linked books comprising science and math titles, and chapter books and novels. It markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers, and its internal tele-sales group; and through a network of independent sales consultants through internet sales, direct sales, home shows, and book fairs. Educational Development Corporation was incorporated in 1965 and is headquartered in Tulsa, Oklahoma.