Analyzing Apollo Education Group (APOL) and TAL Education Group (TAL)

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

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Apollo Education Group N/A N/A N/A ($0.13) -76.88
TAL Education Group $1.04 billion 13.78 $116.88 million $0.24 122.50

TAL Education Group has higher revenue and earnings than Apollo Education Group. Apollo Education Group is trading at a lower price-to-earnings ratio than TAL Education Group, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
Apollo Education Group 0.66% 1.53% 0.65%
TAL Education Group 9.90% 18.17% 6.62%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apollo Education Group 0 0 1 0 3.00
TAL Education Group 0 3 5 0 2.63

TAL Education Group has a consensus target price of $30.18, suggesting a potential upside of 2.66%. Given TAL Education Group’s higher probable upside, analysts plainly believe TAL Education Group is more favorable than Apollo Education Group.

Insider and Institutional Ownership

73.3% of Apollo Education Group shares are owned by institutional investors. Comparatively, 51.2% of TAL Education Group shares are owned by institutional investors. 4.8% of Apollo Education Group shares are owned by insiders. Comparatively, 1.8% of TAL Education Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

TAL Education Group beats Apollo Education Group on 8 of the 11 factors compared between the two stocks.

About Apollo Education Group

Apollo Education Group, Inc. is a United States-based education provider. The Company offers undergraduate, graduate, certificate and non-degree educational programs and services, online and on-campus, to working adults in the United States and abroad. Its segments include University of Phoenix, Apollo Global and Other. The University of Phoenix segment offers undergraduate and graduate degrees through its colleges and schools in a range of program areas, as well as various non-degree programs. Primarily, the University of Phoenix’s students attend classes online. It also offers educational programs and services at ground locations throughout the United States. The Apollo Global segment includes its institutions based outside the United States and its corporate operations. The Other segment includes College for Financial Planning Institutes Corporation; Western International University, Inc.; TIY Academy, LLC; Apollo Professional Development, and Apollo corporate activities.

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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