Tarena International (NASDAQ: TEDU) and China Online Education Group (NYSE:COE) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.
Valuation and Earnings
This table compares Tarena International and China Online Education Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Tarena International||$237.84 million||3.57||$36.39 million||$0.59||25.05|
|China Online Education Group||$60.24 million||4.39||-$74.14 million||($4.18)||-3.15|
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 recent ratings and target prices for Tarena International and China Online Education Group, as reported 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 presently has a consensus target price of $20.10, suggesting a potential upside of 35.99%. Given Tarena International’s higher possible upside, research analysts clearly believe Tarena International is more favorable than China Online Education Group.
Insider and Institutional Ownership
35.3% of Tarena International shares are owned by institutional investors. Comparatively, 25.3% of China Online Education Group shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Tarena International and China Online Education Group’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%|
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.
Tarena International beats China Online Education Group on 10 of the 12 factors compared between the two stocks.
Tarena International Company Profile
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.
China Online Education Group Company Profile
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.
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