China Online Education Group (NYSE: COE) and Tarena International (NASDAQ:TEDU) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.
Tarena International pays an annual dividend of $0.14 per share and has a dividend yield of 0.9%. China Online Education Group does not pay a dividend. Tarena International pays out 23.7% of its earnings in the form of a dividend.
This table compares China Online Education Group and Tarena International’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|China Online Education Group||$60.24 million||4.21||-$74.14 million||($4.13)||-3.06|
|Tarena International||$237.84 million||3.75||$36.39 million||$0.59||26.31|
Tarena International has higher revenue and earnings than China Online Education Group. China Online Education Group is trading at a lower price-to-earnings ratio than Tarena International, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for China Online Education Group and Tarena International, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Online Education Group||0||0||0||0||N/A|
Tarena International has a consensus price target of $20.10, indicating a potential upside of 29.51%. Given Tarena International’s higher probable upside, analysts clearly believe Tarena International is more favorable than China Online Education Group.
Insider & Institutional Ownership
25.4% of China Online Education Group shares are held by institutional investors. Comparatively, 33.1% of Tarena International shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares China Online Education Group and Tarena International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Online Education Group||-92.66%||N/A||-71.07%|
Risk and Volatility
China Online Education Group has a beta of -0.7, suggesting that its stock price is 170% less volatile than the S&P 500. Comparatively, Tarena International has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.
Tarena International beats China Online Education Group on 11 of the 13 factors compared between the two stocks.
About China Online Education Group
China Online Education Group is engaged in providing online English language education services to students in the People’s Republic of China (the PRC). The Company operates an online education platform that provides online tutoring programs to students through the Internet. Its platform analyzes teachers’ teaching aptitudes, feedback and rating from students, as well as background, and recommends suitable teachers to students according to their respective characteristics and learning objectives. The Company develops and tailors its curriculum to its interactive lesson format. The Company offers various courses, which include Classic English and Classic English Junior that are focused on the development of English communication skills. The Company also offers various specialty courses that are focused at situation-based English education and test preparation needs, such as Business English and International English Language Testing System (IELTS) Speaking.
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.
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