Comparing WW International (NASDAQ:WW) & American Public Education (NASDAQ:APEI)
by Jessica Moore · The Cerbat GemWW International (NASDAQ:WW – Get Free Report) and American Public Education (NASDAQ:APEI – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, profitability, earnings, institutional ownership and dividends.
Institutional & Insider Ownership
86.2% of WW International shares are owned by institutional investors. Comparatively, 79.6% of American Public Education shares are owned by institutional investors. 0.4% of WW International shares are owned by company insiders. Comparatively, 10.6% of American Public Education shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares WW International and American Public Education’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| WW International | -56.84% | N/A | -0.32% |
| American Public Education | N/A | N/A | N/A |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for WW International and American Public Education, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WW International | 1 | 1 | 1 | 0 | 2.00 |
| American Public Education | 0 | 3 | 3 | 1 | 2.71 |
WW International currently has a consensus price target of $25.00, suggesting a potential upside of 82.48%. American Public Education has a consensus price target of $59.38, suggesting a potential upside of 28.60%. Given WW International’s higher probable upside, equities research analysts plainly believe WW International is more favorable than American Public Education.
Earnings & Valuation
This table compares WW International and American Public Education”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WW International | $710.64 million | 0.19 | -$112.25 million | ($10.13) | -1.35 |
| American Public Education | $668.01 million | 1.26 | $44.47 million | $2.43 | 19.00 |
American Public Education has lower revenue, but higher earnings than WW International. WW International is trading at a lower price-to-earnings ratio than American Public Education, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
WW International has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500. Comparatively, American Public Education has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.
Summary
American Public Education beats WW International on 10 of the 14 factors compared between the two stocks.
About WW International
WW International, Inc. provides weight management products and services worldwide. It offers a range of nutritional, activity, behavioral, and lifestyle tools and approaches products and services. The company also provides various digital subscription products to wellness and weight management business, which provide interactive and personalized resources that allow users to follow its weight management program through its app and web-based platform; and allows members to inspire and support each other by sharing their experiences with other people on weight health journeys. In addition, it licenses its trademarks and other intellectual property in food, beverages, and other relevant consumer products and services, as well as provides publishing services. The company was formerly known as Weight Watchers International, Inc. and changed its name to WW International, Inc. in September 2019. WW International, Inc. was founded in 1961 and is headquartered in New York, New York.
About American Public Education
American Public Education, Inc., together with its subsidiaries, provides online and campus-based postsecondary education and career learning in the United States. It operates through three segments: American Public University System, Rasmussen University, and Hondros College of Nursing. The company offers 184 degree programs and 134 certificate programs in various fields of study, including nursing, national security, military studies, intelligence, homeland security, business, health science, information technology, justice studies, education, and liberal arts; and career learning opportunities in leadership, finance, human resources, and other fields of study critical to the federal government workforce. It also provides nursing-and health sciences-focused postsecondary education, pre-licensure nursing programs, diploma in practical nursing, and an associate degree in nursing. The company was incorporated in 1991 and is headquartered in Charles Town, West Virginia.