PRDO vs UTI: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
PRDO and UTI are similarly sized, but PRDO trades noticeably cheaper on forward earnings (9.84x vs 42.27x): the market is paying up for UTI's profile and pricing PRDO more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
PRDO vs UTI: 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 | PRDO | UTI | What it tells you |
|---|---|---|---|
| Market cap | $2.03B | $2.16B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 9.84 | 42.27 | 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 | 11.81 | 51.72 | 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 | 0.72 | 1.23 | 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 | 49% of range | 60% 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 | 1.97 | 6.37 | 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 PRDO and UTI 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. PRDO and UTI 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 PRDO and UTI 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 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.
What does Universal Technical Institute (UTI) do?
Universal Technical Institute, Inc. (NYSE: UTI) runs postsecondary vocational schools across two reportable segments. The legacy UTI segment trains students in automotive, diesel, motorcycle, marine, welding, CNC and related skilled trades, while the Concorde Career Colleges segment (acquired in 2022) offers allied health, dental, nursing, patient-care and diagnostic programs. The company generates revenue primarily from student tuition, much of it funded through federal Title IV financial aid, and it has been growing student starts and average full-time enrollment at both segments.
PRDO vs UTI: 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.
- PRDO drivers: St. Augustine is the only segment actually growing; Earnings growth is being manufactured below the revenue line.
- UTI drivers: Skilled-trades demand tailwind; Concorde and healthcare diversification.
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: 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. For UTI, uTI depends heavily on federal Title IV student aid, so changes to financial-aid rules, gainful-employment regulations, or the 90/10 revenue rule could materially affect the business.
PRDO or UTI: which should you pick?
PRDO vs UTI: the full fundamentals
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.
UTI. Fiscal 2025 revenue grew about 14% and net income rose roughly 50% to about $63 million. Fiscal 2026 guidance calls for revenue near $905 to $915 million but net income of only about $40 to $45 million, reflecting roughly $40 million of growth-investment spending. The premium P/E reflects investor expectations that campus expansion will lift future earnings.
Headline figures (approximate, August 2026): 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; UTI shows revenue (fy2025) ~$835.6M, revenue guidance (fy2026) ~$905-915M, net income (fy2025) ~$63M, adjusted ebitda (fy2025) ~$126.5M.
The bottom line: PRDO vs UTI
PRDO and UTI 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 PRDO and UTI exposure against your real portfolio. It is not an investment adviser.
Wondering how PRDO or UTI 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 Perdoceo Education Corporation with AI
Connect the broker you already use and ask Walnut's AI how PRDO 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 PRDO and UTI?
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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. Universal Technical Institute, Inc. 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 PRDO or UTI the better stock?
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Neither is universally better; they suit different views and risk levels. 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, PRDO or UTI?
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On forward P/E (as of August 2026), PRDO trades at 9.84x and UTI at 42.27x, 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 PRDO and UTI?
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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 PRDO vs UTI?
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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. UTI: UTI depends heavily on federal Title IV student aid, so changes to financial-aid rules, gainful-employment regulations, or the 90/10 revenue rule could materially affect the business. Near-term profitability has already collapsed on expansion spending, and the stock's premium multiple leaves little room for disappointment if new campuses underperform or enrollment growth stalls. The for-profit education sector carries a history of regulatory scrutiny and reputational risk. Rising labor and real-estate costs can pressure margins, and an economic downturn can cut both ways on enrollment. Any softening in student starts or graduate placement rates would challenge the growth narrative underpinning the current valuation.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell PRDO or UTI; figures are approximate and dated (as of August 2026). Verify current data before investing.