Financial Contrast: GSX Techedu (NYSE:GSX) versus Creative Learning (NYSE:CLCN)

Creative Learning (OTCMKTS:CLCN) and GSX Techedu (NYSE:GSX) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Institutional & Insider Ownership

20.6% of GSX Techedu shares are held by institutional investors. 35.1% of Creative Learning shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Creative Learning and GSX Techedu’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Creative Learning $2.42 million 0.54 -$220,000.00 N/A N/A
GSX Techedu $303.78 million 32.43 $32.56 million $0.13 322.15

GSX Techedu has higher revenue and earnings than Creative Learning.

Analyst Recommendations

This is a summary of current recommendations and price targets for Creative Learning and GSX Techedu, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Creative Learning 0 0 0 0 N/A
GSX Techedu 1 0 6 0 2.71

GSX Techedu has a consensus price target of $44.83, indicating a potential upside of 7.05%. Given GSX Techedu’s higher probable upside, analysts plainly believe GSX Techedu is more favorable than Creative Learning.

Profitability

This table compares Creative Learning and GSX Techedu’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Creative Learning 29.94% -68.37% 61.95%
GSX Techedu 11.62% 23.56% 10.54%

Summary

GSX Techedu beats Creative Learning on 7 of the 10 factors compared between the two stocks.

About Creative Learning

Creative Learning Corporation provides educational and enrichment programs under the Bricks 4 Kidz and Sew Fun Studios trade names in the United States and internationally. The company's programs are offered to children ages 3 to 13+, which include in-school workshops, and after-school and pre-school classes, as well as classes for home-schooled children; and camps, birthday parties, and special events that are designed to enhance and enrich the traditional school curriculum, trigger young children's lively imaginations, and build self-confidence. As of September 30, 2017, it had 531 Bricks 4 Kidz and Sew Fun Studios franchises, 30 Bricks 4 Kidz master franchises, and 91 Bricks 4 Kidz sub-franchises operating in 44 countries. Creative Learning Corporation was founded in 2009 and is based in St. Augustine, Florida.

About GSX Techedu

GSX Techedu Inc. operates as an online education company in the People's Republic of China. The company provides online K-12 large-class after-school tutoring services. It offers English courses for children in kindergarten; and courses that help children in grade one through grade seven. The company also provides foreign language courses, including English, Japanese, and Korean, as well as English test preparation courses for students taking post-graduate entrance exams in China; and professional courses primarily for working adults preparing for professional qualification exams comprising teacher's qualification, the Chartered Financial Analyst designation, fund qualification, and securities qualification exams. In addition, it offers personal interest courses, such as yoga, fashion, guitar, and Chinese calligraphy. Further, the company provides other courses, including offline business consulting courses, which target principals and other officers of private education institutions who want to enhance management skills; and operate Weishi, an interactive learning platform on Weixin. As of March 31, 2019, it had 169 instructors and 522 tutors. The company was formerly known as BaiJiaHuLian Group Holdings Limited and changed its name to GSX Techedu Inc. in January 2019. GSX Techedu Inc. was founded in 2014 and is headquartered in Beijing, China. GSX Techedu Inc. is a subsidiary of Ebetter International Group Limited.

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