Head to Head Analysis: LAIX (NYSE:LAIX) versus Hailiang Education Group (NYSE:HLG)

LAIX (NYSE:LAIX) and Hailiang Education Group (NASDAQ:HLG) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Institutional & Insider Ownership

14.0% of LAIX shares are held by institutional investors. Comparatively, 0.8% of Hailiang Education Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares LAIX and Hailiang Education Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LAIX $92.68 million 1.37 -$70.99 million N/A N/A
Hailiang Education Group $218.36 million 7.74 $42.99 million N/A N/A

Hailiang Education Group has higher revenue and earnings than LAIX.

Volatility and Risk

LAIX has a beta of 2.46, suggesting that its share price is 146% more volatile than the S&P 500. Comparatively, Hailiang Education Group has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500.

Profitability

This table compares LAIX and Hailiang Education Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LAIX -51.95% -590.12% -49.98%
Hailiang Education Group N/A N/A N/A

Analyst Recommendations

This is a summary of current ratings and price targets for LAIX and Hailiang Education Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LAIX 0 1 0 0 2.00
Hailiang Education Group 0 0 0 0 N/A

LAIX currently has a consensus price target of $6.50, indicating a potential upside of 145.28%. Given LAIX’s higher possible upside, equities analysts clearly believe LAIX is more favorable than Hailiang Education Group.

Summary

Hailiang Education Group beats LAIX on 6 of the 9 factors compared between the two stocks.

About LAIX

LAIX Inc., an artificial intelligence company, provides online English learning services through Liulishuo mobile app in the People's Republic of China. It is also involved in the artificial intelligence lab operation; technology development; and loan arrangement activities. The company was formerly known as LingoChamp Inc. LAIX Inc. was founded in 2013 and is headquartered in Shanghai, the People's Republic of China.

About Hailiang Education Group

Hailiang Education Group Inc., through its subsidiaries, provides K-12 educational services in the People's Republic of China. The company operates six affiliated schools that include Hailiang Primary School, Hailiang Junior Middle School, Hailiang Senior Middle School, Hailiang High School of Art, Hailiang Experimental High School, and Hailiang Foreign Language School; and sixteen managed schools. It also offers management consulting, educational training and logistic, hotel management, sports activities consulting, school management, and purchasing and transportation services, as well as after-school enrichment program, overseas study trip, and international study programs. In addition, the company's schools offer basic educational programs and international programs at the primary school, middle school, and high school levels, as well as courses designed for students to become admitted to programs, such as A-levels courses for the United Kingdom universities, SAT courses for the United States universities, and VCE courses for the Australia universities for students planning to apply to undergraduate programs in the United States, the United Kingdom, and Australia. As of June 30, 2018, it had 22,110 students enrolled in its schools. Hailiang Education Group Inc. was founded in 1995 and is based in Hangzhou, the People's Republic of China.

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