Quick Analysis: ITT Educational Services (ESI)

ESI: ITT Educational Services

For Profit Education Company

Recent Range: $45/share – $125/share (Current Price: 103.16, as of close of 5/11/10)

Price/Sales (P/S) = 2.52 (3.40, Industry)
Price/Book (P/B) = 22.91 (7.83)
Gross Margin = 65.9% (56.9%)
Pre-Tax Margin = 37.8% (16.5%)
Debt/Equity Ratio = 0.96 (0.16)
Current Ratio = 1.3 (1.7)
Return on Equity = 192.3% (47.8%)
Return on Assets = 50.2% (20.0%)

Analysis: I get the feeling that this stock will rise, but I don’t feel comfortable recommending it.

Quick Analysis: Career Education Corp (CECO)

CECO: Career Education Corp

For Profit Education Company

Recent Range: $13/share – $35/share (Current Price: 29.47, as of close of 5/4/10)

Price/Sales (P/S) = 1.34 (3.49, Industry)
Price/Book (P/B) = 2.74 (8.06)
Gross Margin = 65.3% (56.8%)
Pre-Tax Margin = 12.2% (15.3%)
Debt/Equity Ratio = 0.00 (0.22)
Current Ratio = 1.4 (1.9)
Return on Equity = 15.6% (47.2%)
Return on Assets = 9.8% (19.9%)

Analysis: Confused…There are a lot of mixed messages here.