Laureate Education (LAUR) & Four Seasons Edu (Cayman) (FEDU) Head to Head Review

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Laureate Education (NASDAQ:LAUR) and Four Seasons Edu (Cayman) (NYSE:FEDU) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Insider & Institutional Ownership

35.7% of Laureate Education shares are held by institutional investors. Comparatively, 59.9% of Four Seasons Edu (Cayman) shares are held by institutional investors. 4.6% of Laureate Education shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Laureate Education and Four Seasons Edu (Cayman)’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Laureate Education $4.38 billion 0.76 $91.46 million ($1.20) -12.32
Four Seasons Edu (Cayman) $47.49 million 0.86 $7.01 million $0.19 18.11

Laureate Education has higher revenue and earnings than Four Seasons Edu (Cayman). Laureate Education is trading at a lower price-to-earnings ratio than Four Seasons Edu (Cayman), indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Laureate Education and Four Seasons Edu (Cayman)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Laureate Education 11.83% 14.99% 3.87%
Four Seasons Edu (Cayman) 8.78% 4.09% 3.18%

Analyst Ratings

This is a summary of recent recommendations and price targets for Laureate Education and Four Seasons Edu (Cayman), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Laureate Education 0 1 6 0 2.86
Four Seasons Edu (Cayman) 1 1 0 0 1.50

Laureate Education presently has a consensus target price of $18.50, suggesting a potential upside of 25.17%. Four Seasons Edu (Cayman) has a consensus target price of $4.00, suggesting a potential upside of 16.28%. Given Laureate Education’s stronger consensus rating and higher probable upside, equities analysts clearly believe Laureate Education is more favorable than Four Seasons Edu (Cayman).

Dividends

Four Seasons Edu (Cayman) pays an annual dividend of $0.40 per share and has a dividend yield of 11.6%. Laureate Education does not pay a dividend. Four Seasons Edu (Cayman) pays out 210.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Laureate Education beats Four Seasons Edu (Cayman) on 10 of the 15 factors compared between the two stocks.

About Laureate Education

Laureate Education, Inc., together with its subsidiaries, provides higher education programs and services to students through universities and higher education institutions. It operates through six segments: Brazil, Mexico, Andean & Iberian, Central America & U.S. Campuses, EMEAA, and Online & Partnerships. The company offers a range of undergraduate and graduate degree programs primarily in the areas of business and management, medicine and health sciences, and engineering and information technology through campus-based, online, and hybrid programs. It also operates online institutions that offer professionally-oriented degree programs primarily for the working adults with undergraduate and graduate degree programs. The company was formerly known as Sylvan Learning Systems, Inc. and changed its name to Laureate Education, Inc. in May 2004. The company was founded in 1989 and is headquartered in Baltimore, Maryland. Laureate Education, Inc. is a subsidiary of Wengen Alberta, Limited Partnership.

About Four Seasons Edu (Cayman)

Four Seasons Education (Cayman) Inc., together with its subsidiaries, provides after-school education services in the People's Republic of China. The company's education services comprise standard programs; personalized Ivy programs; and special programs, including competition workshops and courses delivered to K-12 schools. It also offers education and management consulting services. The company offers after-school education services for kindergarten, elementary, and middle school students. As of February 28, 2018, the company operated 31 learning centers in Shanghai and 7 in other cities. Four Seasons Education (Cayman) Inc. was founded in 2007 and is based in Shanghai, the People's Republic of China.

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