Financial Survey: Xueda Education Group (XUE) and Bridgepoint Education (BPI)

Xueda Education Group (NYSE: XUE) and Bridgepoint Education (NYSE:BPI) are both small-cap non-cyclical consumer goods & services companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Risk and Volatility

Xueda Education Group has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500. Comparatively, Bridgepoint Education has a beta of 2.06, meaning that its share price is 106% more volatile than the S&P 500.

Institutional & Insider Ownership

87.8% of Bridgepoint Education shares are held by institutional investors. 41.5% of Bridgepoint Education shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Xueda Education Group and Bridgepoint Education’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Xueda Education Group N/A N/A N/A ($0.15) -36.27
Bridgepoint Education $527.09 million 0.40 -$30.04 million $0.14 51.00

Xueda Education Group has higher earnings, but lower revenue than Bridgepoint Education. Xueda Education Group is trading at a lower price-to-earnings ratio than Bridgepoint Education, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Xueda Education Group and Bridgepoint Education, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xueda Education Group 0 0 0 0 N/A
Bridgepoint Education 0 1 0 0 2.00

Bridgepoint Education has a consensus price target of $13.00, indicating a potential upside of 82.07%. Given Bridgepoint Education’s higher possible upside, analysts plainly believe Bridgepoint Education is more favorable than Xueda Education Group.

Profitability

This table compares Xueda Education Group and Bridgepoint Education’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xueda Education Group -4.53% -15.97% -4.86%
Bridgepoint Education 0.49% 12.78% 6.68%

Summary

Bridgepoint Education beats Xueda Education Group on 10 of the 10 factors compared between the two stocks.

About Xueda Education Group

Xueda Education Group is a holding company. The Company, through its subsidiaries and consolidated variable interest entity (VIE), is engaged in providing private personalized tutoring services for primary and secondary school students in the People’s Republic of China (PRC). The Company has developed and implemented a results-oriented, student-centric service delivery model. The Company’s personalized service model consists of six components: assessment, consultation, formulation of a customized study plan, personalized tutoring, delivery of student-oriented supporting services and results. The Company’s learning centers are directly operated by it under its Xueda brand. The Company delivers its services to students through a national network, consisting of approximately 467 learning centers, all of which are operated by it, in 85 cities in China.

About Bridgepoint Education

Bridgepoint Education, Inc. (Bridgepoint) is a provider of postsecondary education services. The Company’s academic institutions include Ashford University and University of the Rockies. Bridgepoint’s institutions conduct ongoing faculty and student assessment processes, and provide a range of student services. It offers Constellation, its learning platform, Waypoint Outcomes, its assessment software, and its mobile application technology. As of December 31, 2016, its institutions offered over 1,200 courses and over 80 degree programs. Ashford University offers associate’s, bachelor’s and master’s degree programs online. Ashford University comprises four colleges: the Forbes School of Business and Technology, the College of Education, the College of Health, Human Services and Science, and the College of Liberal Arts. University of the Rockies is a graduate institution that offers master’s and doctoral degree programs in the social and behavioral sciences.

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