Head-To-Head Analysis: GSX Techedu (NYSE:GOTU) and American Public Education (NASDAQ:APEI)

GSX Techedu (NYSE:GOTU) and American Public Education (NASDAQ:APEI) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Risk and Volatility

GSX Techedu has a beta of -1.19, indicating that its share price is 219% less volatile than the S&P 500. Comparatively, American Public Education has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.

Earnings and Valuation

This table compares GSX Techedu and American Public Education’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GSX Techedu $1.09 billion 3.77 -$32.72 million ($0.89) -18.13
American Public Education $321.79 million 1.64 $18.82 million $1.25 22.56

American Public Education has lower revenue, but higher earnings than GSX Techedu. GSX Techedu is trading at a lower price-to-earnings ratio than American Public Education, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for GSX Techedu and American Public Education, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GSX Techedu 0 2 0 0 2.00
American Public Education 0 1 6 0 2.86

GSX Techedu presently has a consensus target price of $24.75, suggesting a potential upside of 53.35%. American Public Education has a consensus target price of $41.33, suggesting a potential upside of 46.57%. Given GSX Techedu’s higher probable upside, equities research analysts plainly believe GSX Techedu is more favorable than American Public Education.

Profitability

This table compares GSX Techedu and American Public Education’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GSX Techedu -38.72% -96.40% -42.05%
American Public Education 7.30% 7.55% 6.26%

Institutional & Insider Ownership

40.2% of GSX Techedu shares are owned by institutional investors. Comparatively, 95.7% of American Public Education shares are owned by institutional investors. 1.4% of American Public Education shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

American Public Education beats GSX Techedu on 11 of the 14 factors compared between the two stocks.

About GSX Techedu

GSX Techedu Inc., a technology-driven education company, provides online K-12 after-school tutoring services in the People's Republic of China. Its K-12 after-school tutoring courses cover various K-12 academic subjects, including mathematics, English, Chinese, physics, chemistry, biology, history, geography, and political science. The company also provides foreign language courses comprising English and Japanese, as well as English test preparation courses for students taking post-graduate entrance exams; and professional courses primarily for working adults preparing for professional qualification exams, such as teacher's qualification, the Chartered Financial Analyst designation, securities qualification exams, and other exams. In addition, it offers admission courses for admission tests, including national graduate entrance examination, civil service examinations, and others. Further, the company provides other courses, including offline business consulting courses to enhance management skills for principals and other officers of private education institutions; and operates Weishi, an interactive learning platform on WeChat for instructors and students. The company was formerly known as BaiJiaHuLian Group Holdings Limited and changed its name to GSX Techedu Inc. in January 2019. GSX Techedu Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.

About American Public Education

American Public Education, Inc., together with its subsidiaries, provides online and campus-based postsecondary education. The company operates in two segments, American Public Education and Hondros College of Nursing. It offers 129 degree programs and 112 certificate programs in various fields of study, including business administration, health science, technology, criminal justice, education, and liberal arts, as well as national security, military studies, intelligence, and homeland security. The company also provides diploma in practical nursing, an associate degree in nursing, and an associate degree in medical laboratory technology. American Public Education, Inc. was founded in 1991 and is headquartered in Charles Town, West Virginia.

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