Critical Survey: Universal Technical Institute (NYSE:UTI) vs. Meta Data (NYSE:AIU)

Universal Technical Institute (NYSE:UTI) and Meta Data (NYSE:AIU) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.

Institutional & Insider Ownership

75.7% of Universal Technical Institute shares are owned by institutional investors. Comparatively, 0.4% of Meta Data shares are owned by institutional investors. 27.6% of Universal Technical Institute shares are owned by company insiders. Comparatively, 12.7% of Meta Data shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Universal Technical Institute and Meta Data’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Technical Institute	$682.46 million	1.38	$12.32 million	$0.36	48.61
Meta Data	$32.43 million	5.84	$694.49 million	N/A	N/A

Meta Data has lower revenue, but higher earnings than Universal Technical Institute.

Volatility and Risk

Universal Technical Institute has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Meta Data has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.

Profitability

This table compares Universal Technical Institute and Meta Data’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Technical Institute	2.97%	10.55%	2.81%
Meta Data	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and price targets for Universal Technical Institute and Meta Data, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Technical Institute	0	0	6	0	3.00
Meta Data	0	0	0	0	N/A

Universal Technical Institute presently has a consensus price target of $19.50, indicating a potential upside of 11.43%. Given Universal Technical Institute’s higher probable upside, equities analysts clearly believe Universal Technical Institute is more favorable than Meta Data.

Summary

Universal Technical Institute beats Meta Data on 9 of the 11 factors compared between the two stocks.

About Universal Technical Institute

Universal Technical Institute, Inc. provides transportation, skilled trades, and healthcare education programs in the United States. The company operates in two segments, UTI and Concorde. It offers certificate, diploma, or degree programs under various brands, such as Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology. The company also provides manufacturer specific advanced training programs, including student paid electives at its campuses; and manufacturer or dealer sponsored training at various campuses and dedicated training centers. It serves students, partners, and communities by providing education and support services in various fields. Universal Technical Institute, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.

About Meta Data

Meta Data Limited, together with its subsidiaries, operates K-12 after-school education platform that focuses on young children mathematics training services and FasTrack English services in the People's Republic of China and internationally. The company's products include Artificial Intelligent Education (AIE), a smart training system incorporating virtual reality, artificial intelligence, blockchain, and other technologies to facilitate the teaching and training process; Artificial Intelligent Universe (AIU), provides software and hardware infrastructure (IAAS) to Metaverse business operators or individual users targeted to improve the accessibility of rendering modes through cloud computing and edge computing algorithms and computing power to improve the virtual world; and smart ID card services. It also provides technical services, including simulation teaching modules, 3D teaching modules, virtual reality modules, etc. for smart education business operation service providers, as well as digital services; project completion inspection services; and customer acceptance services. The company was formerly known as OneSmart International Education Group Limited and changed its name to Meta Data Limited in April 2022. Meta Data Limited was founded in 2007 and is headquartered in Sha Tin, Hong Kong.