Laureate Education (NASDAQ: LAUR) and RISE Education Cayman (NASDAQ:REDU) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
Insider and Institutional Ownership
29.2% of Laureate Education shares are held by institutional investors. 13.1% of Laureate Education shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Laureate Education and RISE Education Cayman’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Laureate Education||$4.24 billion||0.59||$371.84 million||($1.52)||-8.86|
|RISE Education Cayman||$104.87 million||8.19||$7.95 million||N/A||N/A|
Laureate Education has higher revenue and earnings than RISE Education Cayman.
This is a breakdown of current ratings and target prices for Laureate Education and RISE Education Cayman, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|RISE Education Cayman||0||0||1||0||3.00|
Laureate Education currently has a consensus target price of $17.28, indicating a potential upside of 28.25%. RISE Education Cayman has a consensus target price of $15.50, indicating a potential downside of 0.70%. Given Laureate Education’s higher possible upside, equities analysts plainly believe Laureate Education is more favorable than RISE Education Cayman.
This table compares Laureate Education and RISE Education Cayman’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|RISE Education Cayman||N/A||N/A||N/A|
Laureate Education beats RISE Education Cayman 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 RISE Education Cayman
RISE Education Cayman Ltd is a holding company. The Company, through its subsidiaries, offers after-school English teaching and tutoring services to students aged three to 18. It operates in China’s junior English Language Training (ELT) market. Its offers three flagship courses, including Rise Start, Rise On and Rise Up, that are designed for students aged three to six, seven to twelve and 13 to 18, respectively. As of June 30, 2017, the Company had a network of 246 learning centers across 80 cities in China, among which 56 were self-owned centers and 190 centers were franchised learning centers. Its suite of products comprises both online and offline coursework. Its also offers a series of complementary products to students from both self-owned learning centers and franchised learning centers, including online products Can-Talk and Rise Library Online, and offline products Rise Camp, Rise Workshop and Rise Overseas Study Tour.
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