Head-To-Head Review: American Public Education (APEI) versus RISE Education Cayman (REDU)

American Public Education (NASDAQ: APEI) and RISE Education Cayman (NASDAQ:REDU) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Earnings and Valuation

This table compares American Public Education and RISE Education Cayman’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Public Education $313.14 million 1.31 $24.15 million $1.20 20.96
RISE Education Cayman $104.87 million 8.38 $7.95 million N/A N/A

American Public Education has higher revenue and earnings than RISE Education Cayman.

Profitability

This table compares American Public Education and RISE Education Cayman’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Public Education 6.54% 7.20% 6.05%
RISE Education Cayman N/A N/A N/A

Institutional & Insider Ownership

90.6% of American Public Education shares are held by institutional investors. 3.6% of American Public Education shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for American Public Education and RISE Education Cayman, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Public Education 0 2 0 0 2.00
RISE Education Cayman 0 0 1 0 3.00

American Public Education currently has a consensus target price of $26.50, suggesting a potential upside of 5.37%. RISE Education Cayman has a consensus target price of $15.50, suggesting a potential downside of 2.94%. Given American Public Education’s higher possible upside, equities analysts plainly believe American Public Education is more favorable than RISE Education Cayman.

Summary

American Public Education beats RISE Education Cayman on 8 of the 11 factors compared between the two stocks.

About American Public Education

American Public Education, Inc. provides online and on-campus postsecondary education. The Company provides postsecondary education through its subsidiary institutions, American Public University System, Inc. (APUS) and Hondros College of Nursing (HCON). It operates through two segments: American Public Education Segment, which consists of the operational activities of APUS, other corporate activities, and minority investments, and Hondros College of Nursing Segment, which consists of the operational activities of HCON. APUS provides online postsecondary education to approximately 88,700 adult learners serving the needs of the military and public safety communities as of December 31, 2016. As of December 31, 2016, HCON provided nursing education to approximately 1,300 students across five campuses in the State of Ohio, as well as online. It offers a Diploma in Practical Nursing and an Associate Degree in Nursing. As of December 31, 2016, the Company had approximately 90,000 students.

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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