Contrasting Universal Technical Institute (UTI) and Its Peers

Universal Technical Institute (NYSE:UTI) is one of 166 publicly-traded companies in the “Diversified Consumer Services” industry, but how does it contrast to its peers? We will compare Universal Technical Institute to related businesses based on the strength of its earnings, analyst recommendations, valuation, risk, profitability, institutional ownership and dividends.

Valuation and Earnings

This table compares Universal Technical Institute and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Universal Technical Institute	$883.60 million	N/A	35.76
Universal Technical Institute Competitors	$2.59 billion	$106.84 million	12.03

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

Insider and Institutional Ownership

75.7% of Universal Technical Institute shares are held by institutional investors. Comparatively, 48.4% of shares of all “Diversified Consumer Services” companies are held by institutional investors. 9.8% of Universal Technical Institute shares are held by insiders. Comparatively, 20.2% of shares of all “Diversified Consumer Services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Universal Technical Institute and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Technical Institute	N/A	N/A	N/A
Universal Technical Institute Competitors	-6.28%	-8.31%	3.54%

Dividends

Universal Technical Institute pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Universal Technical Institute pays out 12.9% of its earnings in the form of a dividend. As a group, “Diversified Consumer Services” companies pay a dividend yield of 6.9% and pay out 38.6% of their earnings in the form of a dividend.

Risk & Volatility

Universal Technical Institute has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Universal Technical Institute’s peers have a beta of 0.47, suggesting that their average share price is 53% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Universal Technical Institute and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Technical Institute	0	3	4	0	2.57
Universal Technical Institute Competitors	1427	3415	5257	193	2.41

Universal Technical Institute currently has a consensus price target of $42.83, indicating a potential upside of 93.21%. As a group, “Diversified Consumer Services” companies have a potential upside of 62.22%. Given Universal Technical Institute’s stronger consensus rating and higher probable upside, analysts clearly believe Universal Technical Institute is more favorable than its peers.

Summary

Universal Technical Institute beats its peers on 9 of the 14 factors compared.

Universal Technical Institute Company Profile

Universal Technical Institute, Inc. provides transportation, skilled trades, and healthcare education programs in the United States. The company operates in two segments, UTI and Concorde. It offers certificate, diploma, or degree programs under various brands, such as Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology. The company also provides manufacturer specific advanced training programs, including student paid electives at its campuses; and manufacturer or dealer sponsored training at various campuses and dedicated training centers. It serves students, partners, and communities by providing education and support services in various fields. Universal Technical Institute, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.