Tarena International (NASDAQ: TEDU) and Laureate Education (NASDAQ:LAUR) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitabiliy, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Earnings & Valuation

This table compares Tarena International and Laureate Education’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tarena International N/A N/A N/A $0.61 30.48
Laureate Education $4.22 billion 0.15 $628.61 million N/A N/A

Laureate Education has higher revenue and earnings than Tarena International.

Profitability

This table compares Tarena International and Laureate Education’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tarena International 14.79% 15.89% 11.60%
Laureate Education N/A N/A N/A

Dividends

Tarena International pays an annual dividend of $0.14 per share and has a dividend yield of 0.8%. Laureate Education does not pay a dividend. Tarena International pays out 23.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Tarena International and Laureate Education, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tarena International 0 1 2 0 2.67
Laureate Education 0 3 10 0 2.77

Tarena International currently has a consensus target price of $17.80, indicating a potential downside of 4.25%. Laureate Education has a consensus target price of $17.44, indicating a potential upside of 0.64%. Given Laureate Education’s stronger consensus rating and higher possible upside, analysts plainly believe Laureate Education is more favorable than Tarena International.

Insider & Institutional Ownership

35.5% of Tarena International shares are owned by institutional investors. Comparatively, 95.7% of Laureate Education shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Laureate Education beats Tarena International on 6 of the 10 factors compared between the two stocks.

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.

About Laureate Education

Laureate Education, Inc. operates a network of degree-granting higher education institution. The Company operates in four segments: Latin America (LatAm); Europe; Asia, Middle East and Africa (AMEA), and Global Products and Services (GPS). The Company’s network includes approximately 70 institutions in over 25 countries on over 200 campuses, which the Company collectively refer to as the Laureate International Universities network. The Laureate International Universities network enables the Company to educate its students locally, while connecting them to an international community with a global perspective. The Company’s educational institutions offer a diverse range of academic programs, at the undergraduate and graduate level, including Business and Management; Medical and Health Sciences; Engineering and Information Technology; Architecture, Art and Design; Education; Law and Legal Studies; Communications, and Hospitality Management.

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