Laureate Education (NASDAQ: LAUR) and TAL Education Group (NYSE:TAL) are both mid-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Laureate Education N/A N/A N/A
TAL Education Group 11.14% 19.47% 7.05%

Analyst Recommendations

This is a summary of recent recommendations for Laureate Education and TAL Education Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Laureate Education 0 3 10 0 2.77
TAL Education Group 0 2 7 0 2.78

Laureate Education presently has a consensus price target of $17.28, suggesting a potential upside of 28.92%. TAL Education Group has a consensus price target of $30.18, suggesting a potential downside of 11.15%. Given Laureate Education’s higher probable upside, equities analysts plainly believe Laureate Education is more favorable than TAL Education Group.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Laureate Education $4.24 billion 0.11 $648.36 million N/A N/A
TAL Education Group $1.17 billion 14.35 $182.99 million $0.24 140.57

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

Institutional & Insider Ownership

20.8% of Laureate Education shares are held by institutional investors. Comparatively, 9.6% of TAL Education Group shares are held by institutional investors. 13.1% of Laureate Education shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Laureate Education beats TAL Education Group on 6 of the 11 factors compared between the two stocks.

About Laureate Education

Laureate Education, Inc. provides higher education programs and services to students through an international network of licensed universities and higher education institutions (institutions). The Company’s programs are provided through institutions that are campus-based and Internet-based, or through electronically distributed educational programs (online). It offers its educational services through six segments: Brazil; Mexico; Andean and Iberian; Central America and United States (U.S.) Campuses; Online and Partnerships; and Europe, Middle East, Africa and Asia Pacific (EMEAA). Its institutions also offer an education that emphasizes professional-oriented fields of study with undergraduate and graduate degrees in a wide range of disciplines. As of June 30, 2017, the Company’s global network of 69 institutions comprised 57 institutions it owned or controlled, and an additional 12 institutions that it managed or with which it had other relationships.

About TAL Education Group

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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