Universal Technical Institute (NYSE:UTI) & OneSpaWorld (NASDAQ:OSW) Critical Comparison

OneSpaWorld (NASDAQ:OSW) and Universal Technical Institute (NYSE:UTI) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.

Institutional and Insider Ownership

96.0% of OneSpaWorld shares are owned by institutional investors. Comparatively, 75.7% of Universal Technical Institute shares are owned by institutional investors. 3.6% of OneSpaWorld shares are owned by insiders. Comparatively, 9.8% of Universal Technical Institute shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for OneSpaWorld and Universal Technical Institute, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneSpaWorld	0	1	5	1	3.00
Universal Technical Institute	0	2	4	0	2.67

OneSpaWorld presently has a consensus price target of $30.60, suggesting a potential upside of 41.01%. Universal Technical Institute has a consensus price target of $42.83, suggesting a potential upside of 108.64%. Given Universal Technical Institute’s higher possible upside, analysts plainly believe Universal Technical Institute is more favorable than OneSpaWorld.

Risk and Volatility

OneSpaWorld has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Universal Technical Institute has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Valuation & Earnings

This table compares OneSpaWorld and Universal Technical Institute”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OneSpaWorld	$961.00 million	2.29	$71.62 million	$0.79	27.47
Universal Technical Institute	$835.62 million	1.35	$63.02 million	$0.62	33.11

OneSpaWorld has higher revenue and earnings than Universal Technical Institute. OneSpaWorld is trading at a lower price-to-earnings ratio than Universal Technical Institute, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OneSpaWorld	8.02%	18.36%	14.28%
Universal Technical Institute	3.88%	10.18%	4.02%

Summary

OneSpaWorld beats Universal Technical Institute on 11 of the 15 factors compared between the two stocks.

About OneSpaWorld

OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services. The company also provides its guests access to beauty and wellness brands, including ELEMIS, Grown Alchemist, Kérastase, Dysport, Restylane, Thermage, CoolSculpting, truSculpt 3D, truSculpt iD, Good Feet, and Hyperice with various brands offered in the cruise market. The company is based in Nassau, Bahamas.

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.