Xueda Education Group (NYSE: XUE) and RISE Education Cayman (NASDAQ:REDU) are both small-cap non-cyclical consumer goods & services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.
Institutional & Insider Ownership
4.7% of RISE Education Cayman shares are held by institutional investors. 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.
This table compares Xueda Education Group and RISE Education Cayman’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Xueda Education Group||N/A||N/A||N/A||($0.15)||-36.27|
|RISE Education Cayman||$104.87 million||8.35||$7.95 million||$0.27||58.96|
RISE Education Cayman has higher revenue and earnings than Xueda Education Group. Xueda Education Group is trading at a lower price-to-earnings ratio than RISE Education Cayman, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Xueda Education Group and RISE Education Cayman, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Xueda Education Group||0||0||0||0||N/A|
|RISE Education Cayman||0||0||1||0||3.00|
RISE Education Cayman has a consensus price target of $15.50, indicating a potential downside of 2.64%. Given RISE Education Cayman’s higher probable upside, analysts clearly believe RISE Education Cayman is more favorable than Xueda Education Group.
This table compares Xueda Education Group and RISE Education Cayman’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Xueda Education Group||-4.53%||-15.97%||-4.86%|
|RISE Education Cayman||N/A||N/A||N/A|
RISE Education Cayman beats Xueda Education Group on 9 of the 9 factors compared between the two stocks.
Xueda Education Group Company Profile
Xueda Education Group is a holding company. The Company, through its subsidiaries and consolidated variable interest entity (VIE), is engaged in providing private personalized tutoring services for primary and secondary school students in the People’s Republic of China (PRC). The Company has developed and implemented a results-oriented, student-centric service delivery model. The Company’s personalized service model consists of six components: assessment, consultation, formulation of a customized study plan, personalized tutoring, delivery of student-oriented supporting services and results. The Company’s learning centers are directly operated by it under its Xueda brand. The Company delivers its services to students through a national network, consisting of approximately 467 learning centers, all of which are operated by it, in 85 cities in China.
RISE Education Cayman Company Profile
RISE Education Cayman Ltd is a holding company. The Company, through its subsidiaries, offers after-school English teaching and tutoring services to students aged three to 18. It operates in China’s junior English Language Training (ELT) market. Its offers three flagship courses, including Rise Start, Rise On and Rise Up, that are designed for students aged three to six, seven to twelve and 13 to 18, respectively. As of June 30, 2017, the Company had a network of 246 learning centers across 80 cities in China, among which 56 were self-owned centers and 190 centers were franchised learning centers. Its suite of products comprises both online and offline coursework. Its also offers a series of complementary products to students from both self-owned learning centers and franchised learning centers, including online products Can-Talk and Rise Library Online, and offline products Rise Camp, Rise Workshop and Rise Overseas Study Tour.
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