Harvard Is Schooled by DeVry, Apollo

Given debt-to-asset ratios, while neither school has tiny leverage levels when taking into account all liabilities, neither is operating close to the danger zone. With ratios of 0.55 and 0.43 for Apollo and DeVry, respectively, additional debt could probably be issued without much trouble. The extra capital could benefit the companies by providing a cheaper alternative to equity with which they can fund their expansion.

Both firms have been able to plow large amounts of cash back into the business through retained earnings. DeVry pays a meager dividend and Apollo pays nothing, opting to put the money back to work in the company. DeVry retained $69.1 million and $116.1 million in fiscal 2007 and 2008, respectively, while Apollo retained $437 million in 2007 and $499 million in 2008.

TheStreet.com Ratings has both Apollo and DeVry rated as "buys" because of their impressive price movements and the stability shown on their balance sheets. DeVry also has the distinction of being the highest-rated stock in TheStreet.com Ratings' universe, as of our most recent model run.

These companies have endured for years as the butt of jokes, but their performance isn't comical. Apollo and DeVry are poised to keep this outstanding performance going while silencing the laughter.