China Online Education Group (NYSE:COE) and RYB Education (NYSE:RYB) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
Valuation and Earnings
This table compares China Online Education Group and RYB Education’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|China Online Education Group||$130.33 million||1.44||-$89.27 million||N/A||N/A|
|RYB Education||$140.80 million||3.83||$7.11 million||$0.27||69.63|
Insider & Institutional Ownership
27.1% of China Online Education Group shares are held by institutional investors. Comparatively, 11.4% of RYB Education shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares China Online Education Group and RYB Education’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Online Education Group||-46.85%||N/A||-59.88%|
This is a summary of current ratings and recommmendations for China Online Education Group and RYB Education, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Online Education Group||0||0||0||0||N/A|
RYB Education has a consensus target price of $25.50, indicating a potential upside of 35.64%. Given RYB Education’s higher probable upside, analysts clearly believe RYB Education is more favorable than China Online Education Group.
RYB Education beats China Online Education Group on 8 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 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.
RYB Education Company Profile
RYB Education, Inc. provides early childhood education service in the People's Republic of China. The company offers kindergarten services to 2-6-year-old children; and play-and-learn centers services for the joint participation of 0-6-year-old children and their families to promote children's development and prepare them for their entry into kindergartens and primary schools. It also develops and sells educational products and services, such as teaching aids, educational toys, at-home educational products, and school uniforms through franchisees and alliance participants, as well as directly to a market of families. As of December 31, 2017, it operated 85 directly operated and 210 franchise kindergartens; and 953 play-and-learn centers. The company was formerly known as Top Margin Limited and changed its name to RYB Education, Inc. in June 2017. RYB Education, Inc. was founded in 1998 and is based in Beijing, China.
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