Critical Analysis: National American University (NAUH) & Its Peers

National American University (OTCMKTS:NAUH) is one of 81 public companies in the “Educational services” industry, but how does it weigh in compared to its competitors? We will compare National American University to similar companies based on the strength of its valuation, dividends, profitability, analyst recommendations, institutional ownership, risk and earnings.

Risk & Volatility

National American University has a beta of -1.34, meaning that its stock price is 234% less volatile than the S&P 500. Comparatively, National American University’s competitors have a beta of 0.86, meaning that their average stock price is 14% less volatile than the S&P 500.

Profitability

This table compares National American University and its competitors’ 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	-5.90%	-15.87%	3.37%

Analyst Ratings

This is a summary of current ratings for National American University and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National American University	0	0	0	0	N/A
National American University Competitors	301	1245	1799	145	2.51

As a group, “Educational services” companies have a potential upside of 24.73%. Given National American University’s competitors higher probable upside, analysts plainly believe National American University has less favorable growth aspects than its competitors.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
National American University	$9.64 million	$160,000.00	4.60
National American University Competitors	$808.03 million	$28.66 million	7.97

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

Insider and Institutional Ownership

0.1% of National American University shares are owned by institutional investors. Comparatively, 37.2% of shares of all “Educational services” companies are owned by institutional investors. 56.6% of National American University shares are owned by company insiders. Comparatively, 28.5% of shares of all “Educational services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds 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 391.3%. National American University pays out 1,801.8% 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 1.4% and pay out 22.5% of their earnings in the form of a dividend.

Summary

National American University competitors beat National American University on 8 of the 12 factors compared.

About National American University

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.