Reviewing China Online Education Group (COE) & TAL Education Group (TAL)

China Online Education Group (NYSE: COE) and TAL Education Group (NYSE:TAL) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, valuation, institutional ownership, earnings and dividends.

Volatility & Risk

China Online Education Group has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500. Comparatively, TAL Education Group has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
China Online Education Group -68.30% N/A -72.00%
TAL Education Group 11.57% 18.68% 7.82%

Valuation and Earnings

This table compares China Online Education Group and TAL Education Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Online Education Group $130.33 million 1.73 -$89.27 million N/A N/A
TAL Education Group $1.72 billion 11.54 $198.43 million $0.34 119.06

TAL Education Group has higher revenue and earnings than China Online Education Group.

Insider & Institutional Ownership

27.5% of China Online Education Group shares are held by institutional investors. Comparatively, 60.2% of TAL Education Group shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for China Online Education Group and TAL Education Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Online Education Group 0 0 0 0 N/A
TAL Education Group 0 3 6 0 2.67

TAL Education Group has a consensus price target of $38.35, indicating a potential downside of 5.26%. Given TAL Education Group’s higher probable upside, analysts clearly believe TAL Education Group is more favorable than China Online Education Group.

Summary

TAL Education Group beats China Online Education Group on 10 of the 10 factors compared between the two stocks.

China Online Education Group Company Profile

China Online Education Group, through its subsidiaries, provides online English language education services to students in the People's Republic of China and the Philippines. It operates online and mobile education platforms that enable students to take one-on-one live interactive English lessons with international foreign teachers. The company's flagship courses include Classic English and Classic English Junior for the development of English communication skills. It also offers 17 specialty courses, such as Business English, IELTS Speaking, Free-talk, Interview English, Travel English, Daily English, and others for situation-based English education and test preparation needs. China Online Education Group was founded in 2011 and is headquartered in Beijing, the People's Republic of China.

TAL Education Group Company Profile

TAL Education Group, through its subsidiaries, provides K-12 after-school tutoring services in the People's Republic of China. It offers tutoring services to K-12 students covering various academic subjects, including mathematics, physics, chemistry, biology, history, geography, political science, English, and Chinese. The company also provides tutoring services primarily through small classes, including Xueersi Peiyou, Mobby, and Firstleap tutoring services; personalized premium services under Izhikang name; and online courses. In addition, it operates jzb.com, an online education platform that serves as a gateway to its online courses through xueersi.com and other Websites, which offer college entrance examinations, high school entrance examinations, graduate school entrance examinations, preschool education, Chinese composition, and raising infants and toddlers. Further, the company provides educational content through mobile applications; operates mmbang.com and the Mama Bang app, an online platform focusing on children, baby, and maternity market; and provides consulting services for overseas studies and test courses preparation under the Shunshun Liuxue name. Additionally, it offers tutoring services for students aged two through twelve under the Mobby brand; education and management consulting, and investment management and consulting services; and develops and sells software and networks, as well as offers related consulting services. As of February 28, 2017, the company's educational network included 507 learning centers and 401 service centers in 30 cities. TAL Education Group was founded in 2003 and is headquartered in Beijing, the People's Republic of China.

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