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ATGE vs. LOPE: Which Stock Is the Better Value Option?

Investors with an interest in Schools stocks have likely encountered both Adtalem Global Education (ATGE) and Grand Canyon Education (LOPE). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, both Adtalem Global Education and Grand Canyon Education are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

ATGE currently has a forward P/E ratio of 10.15, while LOPE has a forward P/E of 17.72. We also note that ATGE has a PEG ratio of 0.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LOPE currently has a PEG ratio of 1.18.

Another notable valuation metric for ATGE is its P/B ratio of 1.22. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, LOPE has a P/B of 5.32.

These are just a few of the metrics contributing to ATGE's Value grade of B and LOPE's Value grade of C.

Both ATGE and LOPE are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ATGE is the superior value option right now.

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Adtalem Global Education Inc. (ATGE) : Free Stock Analysis Report

Grand Canyon Education, Inc. (LOPE) : Free Stock Analysis Report

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Zacks Investment Research