2U (NASDAQ:TWOU) & Its Peers Head-To-Head Contrast

2U (NASDAQ: TWOU) is one of 188 public companies in the “IT Services & Consulting” industry, but how does it compare to its rivals? We will compare 2U to related companies based on the strength of its institutional ownership, analyst recommendations, earnings, dividends, risk, profitability and valuation.

Volatility & Risk

2U has a beta of -0.18, suggesting that its share price is 118% less volatile than the S&P 500. Comparatively, 2U’s rivals have a beta of 1.09, suggesting that their average share price is 9% more volatile than the S&P 500.

Profitability

This table compares 2U and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
2U -12.49% -13.02% -9.97%
2U Competitors -14.43% -250.57% -2.67%

Analyst Ratings

This is a summary of current ratings for 2U and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
2U 0 0 10 0 3.00
2U Competitors 716 4621 7354 166 2.54

2U presently has a consensus price target of $63.80, indicating a potential upside of 0.13%. As a group, “IT Services & Consulting” companies have a potential upside of 3.77%. Given 2U’s rivals higher possible upside, analysts clearly believe 2U has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares 2U and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
2U $205.86 million -$20.68 million -95.10
2U Competitors $2.72 billion $280.23 million 265.85

2U’s rivals have higher revenue and earnings than 2U. 2U 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.

Institutional & Insider Ownership

98.3% of 2U shares are held by institutional investors. Comparatively, 62.8% of shares of all “IT Services & Consulting” companies are held by institutional investors. 8.4% of 2U shares are held by insiders. Comparatively, 16.1% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

2U rivals beat 2U on 7 of the 12 factors compared.

2U Company Profile

2U, Inc. is a provider of an integrated solution consisting of cloud-based software-as-a-service (SaaS) combined with technology-enabled services (together, the Platform) that allows colleges and universities to deliver online degree programs. The Company’s SaaS technology consists of a learning environment (Online Campus), which acts as the hub for all student and faculty academic and social interaction, and a suite of integrated applications, which the Company uses to launch, operate and support the Company’s clients’ programs. The Company also provides a suite of technology-enabled services optimized with data analysis and machine learning techniques that support the complete lifecycle of a higher education program, including attracting students, advising students through the admissions application process, providing technical, success coaching and other support, facilitating accessibility to individuals with disabilities, and facilitating in-program field placements.

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