American Public Education (NASDAQ: APEI) and TAL Education Group (NYSE:TAL) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitabiliy, risk, earnings, institutional ownership, analyst recommendations and dividends.
Insider & Institutional Ownership
93.5% of American Public Education shares are held by institutional investors. Comparatively, 57.7% of TAL Education Group shares are held by institutional investors. 3.6% of American Public Education shares are held by insiders. Comparatively, 1.8% of TAL Education Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares American Public Education and TAL Education Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American Public Education||6.01%||9.07%||7.47%|
|TAL Education Group||11.14%||19.93%||7.66%|
This is a summary of recent ratings and target prices for American Public Education and TAL Education Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Public Education||0||2||0||0||2.00|
|TAL Education Group||0||2||9||0||2.82|
American Public Education presently has a consensus price target of $24.00, indicating a potential upside of 8.84%. TAL Education Group has a consensus price target of $142.33, indicating a potential downside of 6.76%. Given American Public Education’s higher possible upside, analysts clearly believe American Public Education is more favorable than TAL Education Group.
Volatility and Risk
American Public Education has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, TAL Education Group has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500.
Valuation and Earnings
This table compares American Public Education and TAL Education Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|American Public Education||$304.86 million||1.17||$60.79 million||$1.13||19.51|
|TAL Education Group||$1.04 billion||12.25||$168.16 million||$1.45||105.28|
TAL Education Group has higher revenue and earnings than American Public Education. American Public Education is trading at a lower price-to-earnings ratio than TAL Education Group, indicating that it is currently the more affordable of the two stocks.
TAL Education Group beats American Public Education on 10 of the 14 factors compared between the two stocks.
About American Public Education
American Public Education, Inc. provides online and on-campus postsecondary education. The Company provides postsecondary education through its subsidiary institutions, American Public University System, Inc. (APUS) and Hondros College of Nursing (HCON). It operates through two segments: American Public Education Segment, which consists of the operational activities of APUS, other corporate activities, and minority investments, and Hondros College of Nursing Segment, which consists of the operational activities of HCON. APUS provides online postsecondary education to approximately 88,700 adult learners serving the needs of the military and public safety communities as of December 31, 2016. As of December 31, 2016, HCON provided nursing education to approximately 1,300 students across five campuses in the State of Ohio, as well as online. It offers a Diploma in Practical Nursing and an Associate Degree in Nursing. As of December 31, 2016, the Company had approximately 90,000 students.
About TAL Education Group
TAL Education Group is a holding company for a group of companies engaged in provision of after-school tutoring programs for primary and secondary school students in the People’s Republic of China (the PRC). The Company is a K-12 after-school tutoring services provider in China. The Company’s Xueersi Peiyou small classes course consists of approximately four semesters, which include approximately two school semesters in Spring and Fall, and approximately two holiday semesters in summer and winter. It operates a Website, www.jzb.com, which is an online education platform in China. It offers personalized premium services under its Zhikang brand. It offers online courses through www.xueersi.com. Through www.xueersi.com, the Company offers online courses on mathematics, English, Chinese, physics, chemistry, biology and other subjects. It also offers select online courses through other Websites. The Company has over 10 call centers in Beijing, Shanghai, Tianjin, Guangzhou and Shenzhen.
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