Reviewing Tarena International (TEDU) & The Competition

Tarena International (NASDAQ: TEDU) is one of 42 publicly-traded companies in the “Educational services” industry, but how does it contrast to its rivals? We will compare Tarena International to related businesses based on the strength of its dividends, analyst recommendations, institutional ownership, earnings, profitability, valuation and risk.

Analyst Ratings

This is a summary of current ratings for Tarena International and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tarena International 0 5 0 0 2.00
Tarena International Competitors 132 606 697 13 2.41

Tarena International currently has a consensus price target of $16.97, suggesting a potential upside of 58.30%. As a group, “Educational services” companies have a potential upside of 5.99%. Given Tarena International’s higher probable upside, equities analysts clearly believe Tarena International is more favorable than its rivals.

Insider & Institutional Ownership

37.3% of Tarena International shares are held by institutional investors. Comparatively, 51.0% of shares of all “Educational services” companies are held by institutional investors. 25.6% of shares of all “Educational services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Tarena International and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Tarena International $292.13 million $27.35 million 23.30
Tarena International Competitors $516.07 million $30.04 million 18.05

Tarena International’s rivals have higher revenue and earnings than Tarena International. Tarena International is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Tarena International and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tarena International 9.47% 11.79% 8.39%
Tarena International Competitors -13.39% -28.89% -6.90%

Dividends

Tarena International pays an annual dividend of $0.14 per share and has a dividend yield of 1.3%. Tarena International pays out 30.4% of its earnings in the form of a dividend. As a group, “Educational services” companies pay a dividend yield of 1.4% and pay out 40.9% of their earnings in the form of a dividend.

Volatility and Risk

Tarena International has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Tarena International’s rivals have a beta of 0.81, meaning that their average stock price is 19% less volatile than the S&P 500.

Summary

Tarena International rivals beat Tarena International on 8 of the 15 factors compared.

Tarena International Company Profile

Tarena International, Inc. (Tarena International) is a holding company. The Company, through its subsidiaries, provides professional education services, including professional information technology (IT) training courses and non-IT training courses across the People’s Republic of China (PRC). It operates through training segment. It offers courses in over 10 IT subjects and approximately three non-IT subjects, and over two kid education programs. It offers an education platform that combines live distance instruction, classroom-based tutoring and online learning modules. It complements the live instruction and tutoring with its learning management system, Tarena Teaching System (TTS). TTS has over five core functions, featuring course content, self-assessment exams, student and teaching staff interaction tools, student management tools and an online student community. In addition, the Company offers Tongcheng and Tongmei featuring IT training courses and non-IT training courses.

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