Comparing New Oriental (EDU) and A-Mark Precious Metals (NASDAQ:AMRK)

A-Mark Precious Metals (NASDAQ: AMRK) and New Oriental (NYSE:EDU) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Volatility and Risk

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A-Mark Precious Metals has a beta of 0.04, meaning that its stock price is 96% less volatile than the S&P 500. Comparatively, New Oriental has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Institutional & Insider Ownership

20.5% of A-Mark Precious Metals shares are held by institutional investors. Comparatively, 79.7% of New Oriental shares are held by institutional investors. 38.8% of A-Mark Precious Metals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares A-Mark Precious Metals and New Oriental’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
A-Mark Precious Metals $6.99 billion 0.01 $7.08 million $1.00 12.84
New Oriental $1.80 billion 7.96 $274.45 million $1.74 52.24

New Oriental has lower revenue, but higher earnings than A-Mark Precious Metals. A-Mark Precious Metals is trading at a lower price-to-earnings ratio than New Oriental, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares A-Mark Precious Metals and New Oriental’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
A-Mark Precious Metals 0.04% 4.06% 0.58%
New Oriental 13.92% 16.19% 9.37%

Dividends

A-Mark Precious Metals pays an annual dividend of $0.32 per share and has a dividend yield of 2.5%. New Oriental does not pay a dividend. A-Mark Precious Metals pays out 32.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings for A-Mark Precious Metals and New Oriental, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
A-Mark Precious Metals 0 1 0 0 2.00
New Oriental 0 1 8 0 2.89

A-Mark Precious Metals currently has a consensus target price of $17.00, suggesting a potential upside of 32.40%. New Oriental has a consensus target price of $100.54, suggesting a potential upside of 10.61%. Given A-Mark Precious Metals’ higher probable upside, research analysts clearly believe A-Mark Precious Metals is more favorable than New Oriental.

Summary

New Oriental beats A-Mark Precious Metals on 12 of the 16 factors compared between the two stocks.

A-Mark Precious Metals Company Profile

A-Mark Precious Metals, Inc., together with its subsidiaries, operates as a precious metals trading company worldwide. The company offers gold, silver, platinum, and palladium in the form of bars, plates, powder, wafers, grains, ingots, and coins, as well as distributes gold and silver coins and bars from sovereign and private mints. It also provides loans on precious metals, and rare coins and other collectibles collateral to coin dealers, collectors, and investors; storage solutions for precious metals and numismatic coins for financial institutions, dealers, investors, and collectors; and a range of logistics services, including storage, shipping, handling, receiving, processing, and inventorying of precious metals and custom coins. In addition, the company offers custom fabricated silver bullion and other specialty products, as well as various services comprising consignment and customized finance programs. It serves mints, manufacturers and fabricators, refiners, coin and bullion dealers, e-commerce retailers, banks and other financial institutions, commodity brokerage houses, industrial users of precious metals, investors, and collectors. The company was founded in 1965 and is headquartered in El Segundo, California.

New Oriental Company Profile

New Oriental Education & Technology Group Inc. provides private educational services under the New Oriental brand in the People's Republic of China. The company operates through Language Training and Test Preparation, Primary and Secondary School Education, Online Education, Content Development and Distribution, Pre-School Education, Overseas Study Consulting Services, and Study Tour segments. It offers test preparation courses to students taking language and entrance exams used by educational institutions in the United States, the People's Republic of China, and the Commonwealth countries; and after-school tutoring courses for middle and high school students to achieve better scores on entrance exams for admission into high schools or higher education institutions, as well as for children to teach English. The company also provides language training courses consisting of English, as well as other foreign languages, such as German, Japanese, French, Korean, Italian, and Spanish; operates full-time private primary and secondary boarding school in Yangzhou seeking a full curriculum taught in Chinese and English; develops and edits educational materials for language training and test preparation comprising books, software, CD-ROMs, magazines, and other periodicals; and offers online education programs on its Websites koolearn.com and koo.cn. In addition, it offers overseas studies consulting; pre-school education; and a pilot program that permits third parties in small cities to provide its English and kindergarten programs, as well as overseas study tour services. As of May 31, 2017, the company offered educational programs, services, and products to students through a network of 77 schools, 855 learning centers, and 20 bookstores. The company was founded in 1993 and is headquartered in Beijing, the People's Republic of China.

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