LAUR vs PRDO: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
LAUR is the larger of the two ($5.28B market cap): the incumbent the market prices for continued execution (15.55x forward earnings, beta 0.46). PRDO is the smaller challenger ($2.03B), cheaper on forward earnings (9.84x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
LAUR vs PRDO: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | LAUR | PRDO | What it tells you |
|---|---|---|---|
| Market cap | $5.28B | $2.03B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 15.55 | 9.84 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 17.33 | 11.81 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.46 | 0.72 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 85% of range | 49% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 5.11 | 1.97 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: PRDO is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how LAUR and PRDO affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. LAUR and PRDO share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined LAUR and PRDO exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Laureate Education (LAUR) do?
Laureate Education (Nasdaq: LAUR) runs a network of private universities and higher-education institutions concentrated in two markets, Mexico (brands including UVM and UNITEC) and Peru (UPC, UPN, and the CIBERTEC technical institute). After years of selling off a sprawling global portfolio, the company reshaped itself into a streamlined operator focused on these two countries, where a growing middle class and limited public-university capacity drive demand for affordable degree and technical programs. Total enrollment sits near 500,000 students, and revenue is earned largely in Mexican pesos and Peruvian soles, which makes reported results sensitive to foreign-exchange swings.
What does Perdoceo Education Corporation (PRDO) do?
Perdoceo Education Corporation (Nasdaq: PRDO) is the Schaumburg, Illinois company that used to trade as Career Education Corporation; it took the Perdoceo name in December 2019 after shedding its campus-heavy culinary and art-school businesses. What remains is three accredited postsecondary institutions. Colorado Technical University is the largest, at ~32,110 students as of June 30, 2026 and about 69% of total enrolment, with roughly 98% of those students fully online. The American InterContinental University System adds ~10,510 students, also almost entirely online. The third piece, the University of St. Augustine for Health Sciences, is the odd one out and the interesting one: a campus-based graduate school in physical therapy, occupational therapy, speech language therapy and nursing, ~4,210 students, growing at ~6% while the two online universities are flat. Total enrolment across all three was ~46,830, up just ~0.7% year over year.
LAUR vs PRDO: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- LAUR drivers: Enrollment and campus expansion; Margin expansion and cash generation.
- PRDO drivers: St. Augustine is the only segment actually growing; Earnings growth is being manufactured below the revenue line.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Because nearly all revenue is earned in Mexican pesos and Peruvian soles, a weakening of those currencies against the US dollar can compress reported results even when local operations grow. For PRDO, the dominant risk is regulatory concentration rather than competition: approximately ~$615 million of Title IV cash receipts in 2025 against ~$846.1 million of revenue means a change in federal aid rules, eligibility, or appropriations flows almost directly into the P&L, and management lists a government shutdown or Department of Education restructuring among its own guidance assumptions.
LAUR or PRDO: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick LAUR if you believe its drivers more; PRDO if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the LAUR and PRDO guides.
LAUR vs PRDO: the full fundamentals
LAUR. Laureate trades at roughly a mid-teens earnings multiple and around 10x EV/EBITDA, valuations that sit below many US-listed education peers, reflecting its emerging-market currency exposure. The company reaffirmed 2026 revenue guidance near $1.9 billion and lifted its adjusted EPS outlook after buybacks. Q1 2026 revenue grew about 15% year over year to roughly $273 million, though the first quarter carries a seasonal net loss.
PRDO. The trailing multiple looks unusually low until the cash is stripped out, at which point the enterprise is valued near ~6.5x trailing operating income and closer to ~5.5x on the adjusted figure. That is the market applying a persistent discount to Title IV dependence and litigation overhang rather than mispricing the cash flow, and it has been roughly the same discount for several years. Worth checking against the filings: a meaningful slice of 2026 EPS growth came from a lower effective tax rate (~20.6% year to date versus ~24.9%) that the company's own full year assumption of ~23.5% does not extend.
Headline figures (approximate, JULY 2026): LAUR shows revenue (ttm) ~$1.75B, adjusted ebitda (fy2025) ~$510M, market cap ~$5.1B, p/e (trailing) ~17x; PRDO shows revenue (ttm) ~$859M, from ~$846.1M in FY2025 and ~$435.1M in the first half of 2026, net income / diluted eps (ttm) ~$177M and ~$2.75, versus ~$159.9M and ~$2.42 for FY2025, market cap and p/e ~$2.03B at ~$32.50 per share, about ~11.9x trailing earnings, cash and short-term investments ~$734.8M with no conventional debt, roughly ~36% of market cap.
The bottom line: LAUR vs PRDO
LAUR and PRDO are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined LAUR and PRDO exposure against your real portfolio. It is not an investment adviser.
Wondering how LAUR or PRDO fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Laureate Education with AI
Connect the broker you already use and ask Walnut's AI how LAUR fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between LAUR and PRDO?
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Laureate Education (Nasdaq: LAUR) runs a network of private universities and higher-education institutions concentrated in two markets, Mexico (brands including UVM and UNITEC) and Peru (UPC, UPN, and the CIBERTEC technical institute). Perdoceo Education Corporation (Nasdaq: PRDO) is the Schaumburg, Illinois company that used to trade as Career Education Corporation; it took the Perdoceo name in December 2019 after shedding its campus-heavy culinary and art-school businesses. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is LAUR or PRDO the better stock?
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Neither is universally better. LAUR is the larger incumbent; PRDO is the smaller challenger and looks cheaper on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, LAUR or PRDO?
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On forward P/E (as of August 2026), LAUR trades at 15.55x and PRDO at 9.84x, so PRDO is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both LAUR and PRDO?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of LAUR vs PRDO?
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LAUR: Because nearly all revenue is earned in Mexican pesos and Peruvian soles, a weakening of those currencies against the US dollar can compress reported results even when local operations grow. The company is heavily concentrated in just two countries, so political, economic, or regulatory shifts in either market carry outsized weight. For-profit and private higher education is politically sensitive and exposed to changes in tuition rules, accreditation, or public funding. Enrollment can be cyclical and tied to household finances, and competition from other private and public institutions is intense. Seasonality also produces uneven quarterly results, including a first-quarter net loss driven by academic calendars. PRDO: The dominant risk is regulatory concentration rather than competition: approximately ~$615 million of Title IV cash receipts in 2025 against ~$846.1 million of revenue means a change in federal aid rules, eligibility, or appropriations flows almost directly into the P&L, and management lists a government shutdown or Department of Education restructuring among its own guidance assumptions. All three institutions were preliminarily in compliance with the 90/10 rule for 2025 and improved versus the prior year, but the calculation methodology is unsettled and the penalty for two consecutive years above the threshold is loss of Title IV eligibility for at least two fiscal years. The elimination of Grad PLUS for new borrowers from July 1, 2026, with new caps on graduate Direct Unsubsidized borrowing, lands squarely on USAHS, the one segment carrying the growth, and the company's assumption that displaced students find private lending is untested. Two False Claims Act qui tam suits brought by former Colorado Technical University employees are live in the District of Colorado, both seeking treble damages, with the Department of Justice having declined to intervene in each; the company has recognised no liability and cannot estimate a range, and rising legal fees already dented CTU segment operating income this quarter. Finally, the core online universities are barely growing, marketing is lead-driven, and Perdoceo itself now flags increased use of AI assistants in place of search engines as a factor that could disrupt how it reaches prospective students.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell LAUR or PRDO; figures are approximate and dated (as of August 2026). Verify current data before investing.