ATGE vs STRA

For growth investors, Adtalem Global Education Inc.

(ATGE) is the stronger pick with 12. 9% revenue growth year-over-year, versus 4. 0% for Strategic Education, Inc. (STRA). Strategic Education, Inc. (STRA) offers the better valuation at 14. 6x trailing P/E (11. 0x forward), making it the more compelling value choice. Analysts rate Adtalem Global Education Inc. (ATGE) a "Buy" — based on 3 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Strategic Education, Inc.

(STRA) is the cheapest at 14. 6x versus Adtalem Global Education Inc. at 17. 6x. On forward P/E, Strategic Education, Inc. is actually cheaper at 11. 0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Strategic Education, Inc. wins at 1. 46x versus Adtalem Global Education Inc. 's 2. 18x — a reasonable growth-adjusted valuation.

Over the past 5 years, Adtalem Global Education Inc.

(ATGE) delivered a total return of +189. 1%, compared to +17. 8% for Strategic Education, Inc. (STRA). Over 10 years, the gap is even starker: ATGE returned +469. 5% versus STRA's +114. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Adtalem Global Education Inc.

(ATGE) is the lower-risk stock at 0. 27β versus Strategic Education, Inc. 's 0. 48β — meaning STRA is approximately 76% more volatile than ATGE relative to the S&P 500. On balance sheet safety, Strategic Education, Inc. (STRA) carries a lower debt/equity ratio of 7% versus 54% for Adtalem Global Education Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Adtalem Global Education Inc.

(ATGE) is pulling ahead at 12. 9% versus 4. 0% for Strategic Education, Inc. (STRA). On earnings-per-share growth, the picture is similar: Adtalem Global Education Inc. grew EPS 79. 1% year-over-year, compared to 16. 1% for Strategic Education, Inc.. Over a 3-year CAGR, ATGE leads at 9. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Adtalem Global Education Inc.

(ATGE) is the more profitable company, earning 13. 3% net margin versus 10. 0% for Strategic Education, Inc. — meaning it keeps 13. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ATGE leads at 19. 1% versus 15. 5% for STRA. At the gross margin level — before operating expenses — ATGE leads at 56. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Strategic Education, Inc. (STRA) is the more undervalued stock at a PEG of 1. 46x versus Adtalem Global Education Inc. 's 2. 18x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Strategic Education, Inc. (STRA) trades at 11. 0x forward P/E versus 13. 4x for Adtalem Global Education Inc. — 2. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ATGE: 29. 4% to $138. 00.

In this comparison, STRA (3.

2% yield) pays a dividend. ATGE does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Strategic Education, Inc.

(STRA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 48), 3. 2% yield, +114. 9% 10Y return). Both have compounded well over 10 years (STRA: +114. 9%, ATGE: +469. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Defensive sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

STRA pays a dividend while ATGE does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.