TAL Education Group (NYSE: TAL) and RISE Education Cayman (NASDAQ:REDU) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.
Valuation & Earnings
This table compares TAL Education Group and RISE Education Cayman’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TAL Education Group||$1.04 billion||19.32||$116.88 million||$0.28||145.52|
|RISE Education Cayman||$148.98 million||6.27||-$7.37 million||N/A||N/A|
TAL Education Group has higher revenue and earnings than RISE Education Cayman.
This table compares TAL Education Group and RISE Education Cayman’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TAL Education Group||10.55%||19.59%||7.22%|
|RISE Education Cayman||N/A||N/A||N/A|
Insider & Institutional Ownership
55.9% of TAL Education Group shares are owned by institutional investors. Comparatively, 10.8% of RISE Education Cayman shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a breakdown of current ratings and recommmendations for TAL Education Group and RISE Education Cayman, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TAL Education Group||0||3||6||0||2.67|
|RISE Education Cayman||0||0||1||0||3.00|
TAL Education Group presently has a consensus target price of $30.72, suggesting a potential downside of 25.49%. RISE Education Cayman has a consensus target price of $15.50, suggesting a potential downside of 8.72%. Given RISE Education Cayman’s stronger consensus rating and higher possible upside, analysts plainly believe RISE Education Cayman is more favorable than TAL Education Group.
TAL Education Group beats RISE Education Cayman on 8 of the 10 factors compared between the two stocks.
TAL Education Group Company Profile
TAL Education Group is a holding company for a group of companies engaged in provision of after-school tutoring programs for primary and secondary school students in the People’s Republic of China (the PRC). The Company is a K-12 after-school tutoring services provider in China. The Company’s Xueersi Peiyou small classes course consists of approximately four semesters, which include approximately two school semesters in Spring and Fall, and approximately two holiday semesters in summer and winter. It operates a Website, www.jzb.com, which is an online education platform in China. It offers personalized premium services under its Zhikang brand. It offers online courses through www.xueersi.com. Through www.xueersi.com, the Company offers online courses on mathematics, English, Chinese, physics, chemistry, biology and other subjects. It also offers select online courses through other Websites. The Company has over 10 call centers in Beijing, Shanghai, Tianjin, Guangzhou and Shenzhen.
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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