TAL Education Group (NYSE: TAL) and China Online Education Group (NYSE:COE) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.
Insider and Institutional Ownership
60.2% of TAL Education Group shares are held by institutional investors. Comparatively, 27.5% of China Online Education Group shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a summary of recent recommendations and price targets for TAL Education Group and China Online Education Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TAL Education Group||0||3||6||0||2.67|
|China Online Education Group||0||0||0||0||N/A|
TAL Education Group presently has a consensus price target of $38.35, indicating a potential downside of 5.26%. Given TAL Education Group’s higher probable upside, analysts clearly believe TAL Education Group is more favorable than China Online Education Group.
Risk & Volatility
TAL Education Group has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, China Online Education Group has a beta of 0.11, suggesting that its stock price is 89% less volatile than the S&P 500.
This table compares TAL Education Group and China Online Education Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TAL Education Group||11.57%||18.68%||7.82%|
|China Online Education Group||-68.30%||N/A||-72.00%|
Valuation and Earnings
This table compares TAL Education Group and China Online Education Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TAL Education Group||$1.72 billion||11.54||$198.43 million||$0.34||119.06|
|China Online Education Group||$130.33 million||1.73||-$89.27 million||N/A||N/A|
TAL Education Group has higher revenue and earnings than China Online Education Group.
TAL Education Group beats China Online Education Group on 10 of the 10 factors compared between the two stocks.
TAL Education Group Company Profile
TAL Education Group, through its subsidiaries, provides K-12 after-school tutoring services in the People's Republic of China. It offers tutoring services to K-12 students covering various academic subjects, including mathematics, physics, chemistry, biology, history, geography, political science, English, and Chinese. The company also provides tutoring services primarily through small classes, including Xueersi Peiyou, Mobby, and Firstleap tutoring services; personalized premium services under Izhikang name; and online courses. In addition, it operates jzb.com, an online education platform that serves as a gateway to its online courses through xueersi.com and other Websites, which offer college entrance examinations, high school entrance examinations, graduate school entrance examinations, preschool education, Chinese composition, and raising infants and toddlers. Further, the company provides educational content through mobile applications; operates mmbang.com and the Mama Bang app, an online platform focusing on children, baby, and maternity market; and provides consulting services for overseas studies and test courses preparation under the Shunshun Liuxue name. Additionally, it offers tutoring services for students aged two through twelve under the Mobby brand; education and management consulting, and investment management and consulting services; and develops and sells software and networks, as well as offers related consulting services. As of February 28, 2017, the company's educational network included 507 learning centers and 401 service centers in 30 cities. TAL Education Group was founded in 2003 and is headquartered in Beijing, the People's Republic of China.
China Online Education Group Company Profile
China Online Education Group, through its subsidiaries, provides online English language education services to students in the People's Republic of China and the Philippines. It operates online and mobile education platforms that enable students to take one-on-one live interactive English lessons with international foreign teachers. The company's flagship courses include Classic English and Classic English Junior for the development of English communication skills. It also offers 17 specialty courses, such as Business English, IELTS Speaking, Free-talk, Interview English, Travel English, Daily English, and others for situation-based English education and test preparation needs. China Online Education Group was founded in 2011 and is headquartered in Beijing, the People's Republic of China.
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