New Oriental Education & Technology Group (NYSE: EDU) and GP Strategies (NYSE:GPX) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.
Insider & Institutional Ownership
77.4% of New Oriental Education & Technology Group shares are held by institutional investors. Comparatively, 88.9% of GP Strategies shares are held by institutional investors. 15.5% of New Oriental Education & Technology Group shares are held by insiders. Comparatively, 25.7% of GP Strategies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares New Oriental Education & Technology Group and GP Strategies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|New Oriental Education & Technology Group||15.15%||17.32%||10.24%|
Earnings & Valuation
This table compares New Oriental Education & Technology Group and GP Strategies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|New Oriental Education & Technology Group||$1.80 billion||7.79||$274.45 million||$1.85||48.05|
|GP Strategies||$490.56 million||0.79||$20.24 million||$1.18||19.53|
New Oriental Education & Technology Group has higher revenue and earnings than GP Strategies. GP Strategies is trading at a lower price-to-earnings ratio than New Oriental Education & Technology Group, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for New Oriental Education & Technology Group and GP Strategies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|New Oriental Education & Technology Group||2||0||7||0||2.56|
New Oriental Education & Technology Group currently has a consensus target price of $87.71, indicating a potential downside of 1.32%. GP Strategies has a consensus target price of $29.50, indicating a potential upside of 27.98%. Given GP Strategies’ higher possible upside, analysts clearly believe GP Strategies is more favorable than New Oriental Education & Technology Group.
Volatility and Risk
New Oriental Education & Technology Group has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, GP Strategies has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.
New Oriental Education & Technology Group beats GP Strategies on 11 of the 14 factors compared between the two stocks.
About New Oriental Education & Technology Group
New Oriental Education & Technology Group Inc. is a provider of private educational services in the People’s Republic of China (the PRC). The Company provides educational services under its New Oriental brand. The Company operates through seven segments, which include language training and test preparation, primary and secondary school education, online education, content development and distribution, pre-school education, overseas study consulting services and study tour. The Company offers a range of educational programs, services and products, consisting of English and other foreign language training, test preparation courses for admissions and assessment tests in the United States, the People’s Republic of China and Commonwealth countries, primary and secondary school education, development and distribution of educational content, software and other technology, and online education.
About GP Strategies
GP Strategies Corporation (GP Strategies) is a global performance improvement solutions provider of sales and technical training, e-learning solutions, management consulting and engineering services. The Company operates in five segments: Learning Solutions, Professional & Technical Services, Sandy Training & Marketing, RWD and Energy Services. Its clients include companies and governmental and other commercial customers in a variety of industries. It serves companies in the automotive, steel, oil and gas, power, chemical, electronics and technology, manufacturing, software, financial, retail, healthcare and food and beverage industries, as well as government agencies. On December 31, 2011, GP Strategies Corporation merged with and into its operating subsidiary, General Physics Corporation (General Physics). In April 2014, the Company acquired Effective-People and Effective-Learning companies.
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