China Online Education Group (NYSE:COE) and Hailiang Education Group (NASDAQ:HLG) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.
Institutional & Insider Ownership
7.2% of China Online Education Group 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, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares China Online Education Group and Hailiang Education Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Online Education Group||-17.61%||N/A||-21.71%|
|Hailiang Education Group||N/A||N/A||N/A|
Valuation and Earnings
This table compares China Online Education Group and Hailiang Education Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|China Online Education Group||$166.61 million||2.21||-$60.61 million||N/A||N/A|
|Hailiang Education Group||$218.36 million||7.98||$42.99 million||N/A||N/A|
Hailiang Education Group has higher revenue and earnings than China Online Education Group.
This is a breakdown of current ratings and target prices for China Online Education Group and Hailiang Education Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Online Education Group||0||0||1||0||3.00|
|Hailiang Education Group||0||0||0||0||N/A|
China Online Education Group currently has a consensus target price of $14.00, indicating a potential downside of 22.39%. Given China Online Education Group’s higher probable upside, equities research analysts clearly believe China Online Education Group is more favorable than Hailiang Education Group.
Volatility & Risk
China Online Education Group has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Hailiang Education Group has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500.
Hailiang Education Group beats China Online Education Group on 5 of the 9 factors compared between the two stocks.
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 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 American Academy and Small Class courses; 51 Talk New Concept English course; and various specialty courses, such as Business English, IELTS Speaking, Free-talk, Interview English, Travel English, and Daily English 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.
Hailiang Education Group Company Profile
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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