Comparing Puxin (NYSE:NEW) and New Oriental Education & Tech Grp (NYSE:EDU)

Puxin (NYSE:NEW) and New Oriental Education & Tech Grp (NYSE:EDU) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Volatility & Risk

Puxin has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, New Oriental Education & Tech Grp has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500.

Institutional & Insider Ownership

7.8% of Puxin shares are owned by institutional investors. Comparatively, 86.1% of New Oriental Education & Tech Grp shares are owned by institutional investors. 15.5% of New Oriental Education & Tech Grp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Puxin and New Oriental Education & Tech Grp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Puxin -31.06% -89.64% -18.49%
New Oriental Education & Tech Grp 7.69% 12.97% 6.62%

Analyst Ratings

This is a summary of current ratings and target prices for Puxin and New Oriental Education & Tech Grp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Puxin 0 1 1 0 2.50
New Oriental Education & Tech Grp 0 1 8 0 2.89

Puxin currently has a consensus target price of $28.43, suggesting a potential upside of 337.38%. New Oriental Education & Tech Grp has a consensus target price of $91.33, suggesting a potential downside of 12.05%. Given Puxin’s higher probable upside, analysts clearly believe Puxin is more favorable than New Oriental Education & Tech Grp.

Earnings and Valuation

This table compares Puxin and New Oriental Education & Tech Grp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Puxin $324.07 million 1.66 -$121.21 million N/A N/A
New Oriental Education & Tech Grp $3.10 billion 4.78 $238.07 million $1.50 69.23

New Oriental Education & Tech Grp has higher revenue and earnings than Puxin.

Summary

New Oriental Education & Tech Grp beats Puxin on 11 of the 12 factors compared between the two stocks.

About Puxin

Puxin Limited, through its subsidiaries, provides after-school education services in China. It offers a range of K-12 and study-abroad tutoring programs designed to help students prepare for admission tests and applications for top schools, universities, and graduate programs in China and other countries. The company also provides group class courses; personalized tutoring courses; English tutoring services for children in kindergarten; and extra-curricular courses to students, such as painting, calligraphy, music, debate, and science, as well as offers Web-based and mobile-based platforms for K-12 tutoring services. In addition, it sells education materials; and provides advertisement, study consulting, and training services. As of March 31, 2018, the company had a network of 397 learning centers; and 4 schools providing extra-curricular education courses. Puxin Limited was founded in 2014 and is headquartered in Beijing, China.

About New Oriental Education & Tech Grp

New Oriental Education & Technology Group Inc. provides private educational services under the New Oriental brand in the People's Republic of China. It operates through Language Training and Test Preparation Courses, and Others segments. The company offers test preparation courses to students taking language and entrance exams used by educational institutions in the United States, the People's Republic of China, and the Commonwealth countries; and after-school tutoring courses for middle and high school students to achieve better scores on entrance exams for admission into high schools or higher education institutions, as well as for children to teach English. It also provides language training courses, including English, as well as other foreign languages, such as German, Japanese, French, Korean, Italian, and Spanish; operates a full-time private primary and secondary school in Yangzhou seeking a full curriculum taught in Chinese and English; develops and edits educational materials for language training and test preparation comprising books, software, CD-ROMs, magazines, and other periodicals; and offers online education programs that include college, K-12, and pre-school education. In addition, the company offers overseas studies consulting; pre-school education; and a pilot program that permits third parties in small cities to provide its English and kindergarten programs, as well as overseas study tour services. As of May 31, 2018, it offered educational programs, services, and products to students through a network of 87 schools, 994 learning centers, and 18 bookstores. The company was founded in 1993 and is headquartered in Beijing, the People's Republic of China.

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