Udemy (NASDAQ:UDMY – Get Rating) and Perdoceo Education (NASDAQ:PRDO – Get Rating) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.
Volatility and Risk
Udemy has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, Perdoceo Education has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.
Get Udemy alerts:Insider & Institutional Ownership
73.3% of Udemy shares are held by institutional investors. Comparatively, 91.0% of Perdoceo Education shares are held by institutional investors. 39.2% of Udemy shares are held by company insiders. Comparatively, 2.9% of Perdoceo Education shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Udemy and Perdoceo Education's revenue, earnings per share (EPS) and valuation.| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Udemy | $518.16 million | 3.00 | -$80.03 million | ($1.08) | -10.19 |
| Perdoceo Education | $693.03 million | 1.46 | $109.64 million | $1.50 | 10.02 |
Perdoceo Education has higher revenue and earnings than Udemy. Udemy 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 Recommendations
This is a summary of recent recommendations for Udemy and Perdoceo Education, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Udemy | 0 | 3 | 4 | 0 | 2.57 |
| Perdoceo Education | 0 | 0 | 1 | 0 | 3.00 |
Udemy currently has a consensus price target of $18.17, suggesting a potential upside of 65.00%. Perdoceo Education has a consensus price target of $16.00, suggesting a potential upside of 6.45%. Given Udemy's higher probable upside, analysts clearly believe Udemy is more favorable than Perdoceo Education.
Profitability
This table compares Udemy and Perdoceo Education's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Udemy | -23.37% | -36.30% | -18.45% |
| Perdoceo Education | 15.37% | 17.44% | 13.80% |
Summary
Perdoceo Education beats Udemy on 9 of the 14 factors compared between the two stocks.
About Udemy
(Get Rating)
Udemy, Inc. operates a marketplace platform for teaching and learning skills in the United States and internationally. The company offers technical and business skills, and personal development courses for individual learners and enterprise customers. Its platform provides 49 million learners with access to approximately 180,000 courses through direct-to-consumer or Udemy Business offerings in approximately 75 languages. The company's courses offer learning objectives, such as reskilling or upskilling in technology and business, and soft skills, as well as learners receive access to interactive learning tools comprising quizzes, exercises, and instructor questions-and-answers. Udemy, Inc. was incorporated in 2010 and is headquartered in San Francisco, California.
About Perdoceo Education
(Get Rating)
Perdoceo Education Corp. engages in the provision of educational services. It operates through the following segments: Colorado Technical University (CTU) and American InterContinental University (AIU). The CTU segment offers academic programs in the disciplines of business studies, nursing, computer science, engineering, information systems and technology, cybersecurity and healthcare management. The AIU segment provides academic programs in the disciplines of business studies, information technologies, education and criminal justice. The company was founded by John M. Larson on January 5, 1994 and is headquartered in Schaumburg, IL.
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