Head to Head Comparison: Educational Development (EDUC) vs. Its Competitors

Educational Development (NASDAQ:EDUC) is one of 258 publicly-traded companies in the “Media” industry, but how does it compare to its peers? We will compare Educational Development to related businesses based on the strength of its earnings, risk, profitability, institutional ownership, analyst recommendations, valuation and dividends.

Insider & Institutional Ownership

19.6% of Educational Development shares are held by institutional investors. Comparatively, 38.5% of shares of all “Media” companies are held by institutional investors. 11.9% of Educational Development shares are held by insiders. Comparatively, 17.6% 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 will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Educational Development	$22.91 million	$2.33 million	5.67
Educational Development Competitors	$2.98 billion	-$7.62 million	15.30

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

Volatility and Risk

Educational Development has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Educational Development’s peers have a beta of 0.96, suggesting that their average stock price is 4% less volatile than the S&P 500.

Profitability

This table compares Educational Development and its peers’ 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	-19.99%	-47.70%	-5.10%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Educational Development and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Educational Development	0	1	0	0	2.00
Educational Development Competitors	2284	6899	10848	478	2.46

As a group, “Media” companies have a potential upside of 27.52%. Given Educational Development’s peers stronger consensus rating and higher probable upside, analysts clearly believe Educational Development has less favorable growth aspects than its peers.

Summary

Educational Development peers beat Educational Development on 9 of the 13 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.