Reviewing Educational Development (EDUC) & Its Competitors
by Michael Walen · The Markets DailyEducational Development (NASDAQ:EDUC – Get Free Report) is one of 259 public companies in the “Media” industry, but how does it compare to its rivals? We will compare Educational Development to related companies based on the strength of its institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.
Risk and Volatility
Educational Development has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Educational Development’s rivals have a beta of 0.96, meaning that their average share price is 4% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Educational Development and its rivals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Educational Development | 1 | 0 | 0 | 0 | 1.00 |
| Educational Development Competitors | 2273 | 6891 | 10852 | 477 | 2.47 |
As a group, “Media” companies have a potential upside of 23.55%. Given Educational Development’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Educational Development has less favorable growth aspects than its rivals.
Institutional & Insider Ownership
19.6% of Educational Development shares are owned by institutional investors. Comparatively, 38.8% of shares of all “Media” companies are owned by institutional investors. 11.9% of Educational Development shares are owned by insiders. Comparatively, 17.6% of shares of all “Media” companies are owned by 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.
Earnings & Valuation
This table compares Educational Development and its rivals revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Educational Development | $22.91 million | $2.33 million | 5.65 |
| Educational Development Competitors | $2.96 billion | -$7.90 million | 14.91 |
Educational Development’s rivals have higher revenue, but lower earnings than Educational Development. Educational Development is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Profitability
This table compares Educational Development and its rivals’ 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 | -20.08% | -47.96% | -5.10% |
Summary
Educational Development rivals beat Educational Development on 9 of the 13 factors compared.
Educational Development Company Profile
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.