Reviewing OneSpaWorld (NASDAQ:OSW) and American Public Education (NASDAQ:APEI)
by Michael Walen · The Markets DailyAmerican Public Education (NASDAQ:APEI – Get Free Report) and OneSpaWorld (NASDAQ:OSW – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.
Profitability
This table compares American Public Education and OneSpaWorld’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Public Education | 6.84% | 15.30% | 8.61% |
| OneSpaWorld | 8.26% | 18.93% | 14.90% |
Risk & Volatility
American Public Education has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500. Comparatively, OneSpaWorld has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.
Insider and Institutional Ownership
79.6% of American Public Education shares are owned by institutional investors. Comparatively, 96.0% of OneSpaWorld shares are owned by institutional investors. 10.6% of American Public Education shares are owned by insiders. Comparatively, 3.6% of OneSpaWorld shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares American Public Education and OneSpaWorld”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Public Education | $648.86 million | 1.05 | $31.56 million | $2.43 | 15.34 |
| OneSpaWorld | $961.00 million | 3.29 | $71.62 million | $0.84 | 37.06 |
OneSpaWorld has higher revenue and earnings than American Public Education. American Public Education is trading at a lower price-to-earnings ratio than OneSpaWorld, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for American Public Education and OneSpaWorld, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Public Education | 0 | 3 | 3 | 1 | 2.71 |
| OneSpaWorld | 0 | 1 | 5 | 0 | 2.83 |
American Public Education currently has a consensus price target of $59.00, suggesting a potential upside of 58.26%. OneSpaWorld has a consensus price target of $34.00, suggesting a potential upside of 9.22%. Given American Public Education’s higher probable upside, analysts clearly believe American Public Education is more favorable than OneSpaWorld.
Summary
OneSpaWorld beats American Public Education on 10 of the 15 factors compared between the two stocks.
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.
About OneSpaWorld
OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services. The company also provides its guests access to beauty and wellness brands, including ELEMIS, Grown Alchemist, Kérastase, Dysport, Restylane, Thermage, CoolSculpting, truSculpt 3D, truSculpt iD, Good Feet, and Hyperice with various brands offered in the cruise market. The company is based in Nassau, Bahamas.