New Oriental Education & Technology Group (NYSE: EDU) and GP Strategies Corporation (NYSE:GPX) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.
This is a breakdown of recent recommendations for New Oriental Education & Technology Group and GP Strategies Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|New Oriental Education & Technology Group||2||0||7||0||2.56|
|GP Strategies Corporation||0||1||1||0||2.50|
New Oriental Education & Technology Group currently has a consensus target price of $87.71, indicating a potential downside of 2.96%. GP Strategies Corporation has a consensus target price of $29.50, indicating a potential upside of 24.47%. Given GP Strategies Corporation’s higher possible upside, analysts clearly believe GP Strategies Corporation is more favorable than New Oriental Education & Technology Group.
Institutional and Insider Ownership
75.6% of New Oriental Education & Technology Group shares are owned by institutional investors. Comparatively, 87.8% of GP Strategies Corporation shares are owned by institutional investors. 25.7% of GP Strategies Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
New Oriental Education & Technology Group has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, GP Strategies Corporation has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.
Valuation and Earnings
This table compares New Oriental Education & Technology Group and GP Strategies Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|New Oriental Education & Technology Group||$1.80 billion||7.92||$274.45 million||$1.85||48.86|
|GP Strategies Corporation||$490.56 million||0.81||$20.24 million||$1.19||19.92|
New Oriental Education & Technology Group has higher revenue and earnings than GP Strategies Corporation. GP Strategies Corporation is trading at a lower price-to-earnings ratio than New Oriental Education & Technology Group, indicating that it is currently the more affordable of the two stocks.
This table compares New Oriental Education & Technology Group and GP Strategies Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|New Oriental Education & Technology Group||15.15%||17.32%||10.24%|
|GP Strategies Corporation||3.95%||12.16%||6.50%|
New Oriental Education & Technology Group beats GP Strategies Corporation on 11 of the 14 factors compared between the two stocks.
New Oriental Education & Technology Group Company Profile
New Oriental Education & Technology Group Inc. is a provider of private educational services in the People’s Republic of China (the PRC). The Company provides educational services under its New Oriental brand. The Company operates through seven segments, which include language training and test preparation, primary and secondary school education, online education, content development and distribution, pre-school education, overseas study consulting services and study tour. The Company offers a range of educational programs, services and products, consisting of English and other foreign language training, test preparation courses for admissions and assessment tests in the United States, the People’s Republic of China and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education.
GP Strategies Corporation Company Profile
GP Strategies Corporation (GP Strategies) is a global performance improvement solutions provider of sales and technical training, e-learning solutions, management consulting and engineering services. The Company operates in five segments: Learning Solutions, Professional & Technical Services, Sandy Training & Marketing, RWD and Energy Services. Its clients include companies and governmental and other commercial customers in a variety of industries. It serves companies in the automotive, steel, oil and gas, power, chemical, electronics and technology, manufacturing, software, financial, retail, healthcare and food and beverage industries, as well as government agencies. On December 31, 2011, GP Strategies Corporation merged with and into its operating subsidiary, General Physics Corporation (General Physics). In April 2014, the Company acquired Effective-People and Effective-Learning companies.
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