Financial Analysis: National American University (NAUH) vs. The Competition

Risk & Volatility

National American University has a beta of -1.27, meaning that its stock price is 227% less volatile than the S&P 500. Comparatively, National American University’s peers have a beta of 0.87, meaning that their average stock price is 13% less volatile than the S&P 500.

Insider and Institutional Ownership

0.1% of National American University shares are held by institutional investors. Comparatively, 37.2% of shares of all “Educational services” companies are held by institutional investors. 56.6% of National American University shares are held by insiders. Comparatively, 28.5% of shares of all “Educational services” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

National American University pays an annual dividend of $0.18 per share and has a dividend yield of 409.1%. National American University pays out 1,800.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Educational services” companies pay a dividend yield of 1.1% and pay out 19.9% of their earnings in the form of a dividend.

Profitability

This table compares National American University and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National American University	2.76%	N/A	N/A
National American University Competitors	-6.70%	-16.26%	3.30%

Earnings & Valuation

This table compares National American University and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
National American University	$9.64 million	$160,000.00	4.40
National American University Competitors	$613.60 million	$28.83 million	7.76

National American University’s peers have higher revenue and earnings than National American University. National American University is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

National American University peers beat National American University on 7 of the 11 factors compared.

National American University Company Profile

National American University Holdings, Inc. owns and operates National American University (NAU) that provides professional and technical postsecondary education primarily for working adults and other non-traditional students in the United States. It operates in two segments, NAU and Other. The company offers diploma, associate, baccalaureate, master's, and doctoral degree programs in business-related disciplines, such as accounting, management, business administration, and information technology; healthcare-related disciplines, including occupational therapy, medical assisting, nursing, surgical technology, and healthcare information and management; legal-related disciplines comprising paralegal, criminal justice, and professional legal studies; and higher education. As of July 31, 2019, it operated five 33 educational sites in Colorado, Indiana, Kansas, South Dakota, and Texas; and distance learning service centers and administration offices in Rapid City, South Dakota, as well as through the Internet. The company also engages in the real estate business, which rents apartment units; and develops and sells condominium units in the Fairway Hills Planned Residential Development area of Rapid City, South Dakota. National American University Holdings, Inc. was founded in 1941 and is headquartered in Rapid City, South Dakota.