Tarena International (TEDU) & CAE (NYSE:CAE) Head to Head Analysis

Tarena International (NASDAQ: TEDU) and CAE (NYSE:CAE) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Earnings and Valuation

This table compares Tarena International and CAE’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tarena International $244.66 million 4.18 $43.57 million $0.61 29.77
CAE $2.16 billion 2.06 $403.97 million $0.71 23.31

CAE has higher revenue and earnings than Tarena International. CAE is trading at a lower price-to-earnings ratio than Tarena International, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

35.2% of Tarena International shares are held by institutional investors. Comparatively, 56.7% of CAE shares are held by institutional investors. 18.3% of CAE shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for Tarena International and CAE, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tarena International 0 1 2 0 2.67
CAE 0 6 2 0 2.25

Tarena International currently has a consensus target price of $20.50, indicating a potential upside of 12.89%. CAE has a consensus target price of $19.17, indicating a potential upside of 15.81%. Given CAE’s higher probable upside, analysts plainly believe CAE is more favorable than Tarena International.

Dividends

Tarena International pays an annual dividend of $0.14 per share and has a dividend yield of 0.8%. CAE pays an annual dividend of $0.24 per share and has a dividend yield of 1.5%. Tarena International pays out 23.0% of its earnings in the form of a dividend. CAE pays out 33.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Tarena International and CAE’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tarena International 14.79% 15.89% 11.60%
CAE 9.30% 13.96% 5.39%

Risk and Volatility

Tarena International has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, CAE has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Summary

Tarena International beats CAE on 8 of the 15 factors compared between the two stocks.

About Tarena International

Tarena International, Inc. (Tarena International) is a holding company. The Company, through its subsidiaries, provides professional education services, including professional information technology (IT) training courses and non-IT training courses across the People’s Republic of China (PRC). It operates through training segment. It offers courses in over 10 IT subjects and approximately three non-IT subjects, and over two kid education programs. It offers an education platform that combines live distance instruction, classroom-based tutoring and online learning modules. It complements the live instruction and tutoring with its learning management system, Tarena Teaching System (TTS). TTS has over five core functions, featuring course content, self-assessment exams, student and teaching staff interaction tools, student management tools and an online student community. In addition, the Company offers Tongcheng and Tongmei featuring IT training courses and non-IT training courses.

About CAE

CAE Inc. provides training for the civil aviation, defense and security, and healthcare markets. The Company designs and integrates training solutions. It operates through three segments: Civil Aviation Training Solutions, Defense and Security, and Healthcare. The Company provides training solutions for flight, cabin, maintenance and ground personnel in commercial, business and helicopter aviation, a range of flight simulation training devices, as well as ab initio pilot training and crew sourcing services. The Company is a training systems integrator for defense forces across the air, land and sea domains, and for government and civil security organizations responsible for public safety. The Company designs, manufactures and markets simulators, simulation center management solutions and courseware for training of medical and allied healthcare students and clinicians in educational institutions, hospitals and defense organizations across the world.

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