Xueda Education Group (NYSE: XUE) and TAL Education Group (NYSE:TAL) are both non-cyclical consumer goods & services companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.

Analyst Recommendations

This is a summary of recent ratings and price targets for Xueda Education Group and TAL Education Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xueda Education Group 0 0 0 0 N/A
TAL Education Group 0 2 9 0 2.82

TAL Education Group has a consensus price target of $26.79, indicating a potential downside of 16.82%. Given TAL Education Group’s higher probable upside, analysts clearly believe TAL Education Group is more favorable than Xueda Education Group.

Profitability

This table compares Xueda Education Group and TAL Education Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xueda Education Group -4.53% -15.97% -4.86%
TAL Education Group 11.14% 19.47% 7.05%

Valuation & Earnings

This table compares Xueda Education Group and TAL Education Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Xueda Education Group N/A N/A N/A N/A N/A
TAL Education Group $1.17 billion 13.61 $182.99 million $0.24 133.29

TAL Education Group has higher revenue and earnings than Xueda Education Group.

Insider & Institutional Ownership

8.6% of TAL Education Group shares are owned by institutional investors. 1.8% of TAL Education Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

TAL Education Group beats Xueda Education Group on 8 of the 8 factors compared between the two stocks.

Xueda Education Group Company Profile

Xueda Education Group is a holding company. The Company, through its subsidiaries and consolidated variable interest entity (VIE), is engaged in providing private personalized tutoring services for primary and secondary school students in the People’s Republic of China (PRC). The Company has developed and implemented a results-oriented, student-centric service delivery model. The Company’s personalized service model consists of six components: assessment, consultation, formulation of a customized study plan, personalized tutoring, delivery of student-oriented supporting services and results. The Company’s learning centers are directly operated by it under its Xueda brand. The Company delivers its services to students through a national network, consisting of approximately 467 learning centers, all of which are operated by it, in 85 cities in China.

TAL Education Group Company Profile

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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