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

Profitability

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

Net Margins Return on Equity Return on Assets
Grand Canyon Education 18.25% 18.82% 13.76%
Xueda Education Group -4.53% -15.97% -4.86%

Institutional and Insider Ownership

96.6% of Grand Canyon Education shares are held by institutional investors. 3.0% of Grand Canyon Education shares are held 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.

Analyst Ratings

This is a summary of current ratings and price targets for Grand Canyon Education and Xueda Education Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Grand Canyon Education 0 0 3 0 3.00
Xueda Education Group 0 0 0 0 N/A

Grand Canyon Education currently has a consensus price target of $88.67, suggesting a potential downside of 0.35%. Given Grand Canyon Education’s higher probable upside, analysts plainly believe Grand Canyon Education is more favorable than Xueda Education Group.

Valuation and Earnings

This table compares Grand Canyon Education and Xueda Education Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Grand Canyon Education $921.61 million 4.65 $310.30 million $3.62 24.58
Xueda Education Group N/A N/A N/A N/A N/A

Grand Canyon Education has higher revenue and earnings than Xueda Education Group.

Summary

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

Grand Canyon Education Company Profile

Grand Canyon Education, Inc. is engaged in the provision of postsecondary education. The Company is a regionally accredited university. The Company offers the degrees, including Doctor of Education, Doctor of Business Administration, Doctor of Nursing Practice, Doctor of Philosophy, Education Specialist, Master of Divinity, Master of Arts, Master of Education, Master of Business Administration and Master of Public Administration, Master of Public Health, Master of Science, Bachelor of Arts, Bachelor of Science, and a range of programs for its degrees. It also offers certificate programs, which consist of a series of courses focused on a particular area of study for both the post-baccalaureate and post-graduate students. The Company offers its ground-based programs to students through three 15-week semesters in a calendar year and to online students in courses that generally range from 5 to 16 weeks throughout the calendar year.

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.

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