Critical Review: Bright Scholar Education Holdngs (BEDU) versus The Competition

Bright Scholar Education Holdngs (NYSE: BEDU) is one of 43 publicly-traded companies in the “Educational services” industry, but how does it compare to its peers? We will compare Bright Scholar Education Holdngs to related businesses based on the strength of its dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Bright Scholar Education Holdngs and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bright Scholar Education Holdngs 14.37% 12.61% 7.75%
Bright Scholar Education Holdngs Competitors -10.05% -24.81% -4.90%

Earnings and Valuation

This table compares Bright Scholar Education Holdngs and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Bright Scholar Education Holdngs $201.61 million $26.11 million 47.44
Bright Scholar Education Holdngs Competitors $505.28 million $24.86 million 10.80

Bright Scholar Education Holdngs’ peers have higher revenue, but lower earnings than Bright Scholar Education Holdngs. Bright Scholar Education Holdngs is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current recommendations and price targets for Bright Scholar Education Holdngs and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bright Scholar Education Holdngs 0 0 3 0 3.00
Bright Scholar Education Holdngs Competitors 176 715 802 24 2.39

Bright Scholar Education Holdngs currently has a consensus price target of $17.00, suggesting a potential upside of 43.34%. As a group, “Educational services” companies have a potential upside of 26.69%. Given Bright Scholar Education Holdngs’ stronger consensus rating and higher possible upside, analysts clearly believe Bright Scholar Education Holdngs is more favorable than its peers.

Institutional & Insider Ownership

13.2% of Bright Scholar Education Holdngs shares are held by institutional investors. Comparatively, 54.9% of shares of all “Educational services” companies are held by institutional investors. 24.4% of shares of all “Educational services” companies are held 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.

Risk & Volatility

Bright Scholar Education Holdngs has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500. Comparatively, Bright Scholar Education Holdngs’ peers have a beta of 0.39, meaning that their average stock price is 61% less volatile than the S&P 500.

Summary

Bright Scholar Education Holdngs beats its peers on 9 of the 13 factors compared.

Bright Scholar Education Holdngs Company Profile

Bright Scholar Education Holdings Limited operates K-12 schools in China. Its schools comprise international schools, bilingual schools, and kindergartens. The company also offers a range of complementary education services, including international camps and after-school programs. As of May 31, 2018, it had a network of 67 schools with approximately 35,275 students. The company was founded in 1994 and is based in Foshan, China.

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