RISE Education Cayman (REDU) versus Career Education (CECO) Critical Review

RISE Education Cayman (NASDAQ: REDU) and Career Education (NASDAQ:CECO) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Insider and Institutional Ownership

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10.8% of RISE Education Cayman shares are owned by institutional investors. Comparatively, 77.4% of Career Education shares are owned by institutional investors. 5.0% of Career Education shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.


This table compares RISE Education Cayman and Career Education’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RISE Education Cayman N/A N/A N/A
Career Education -5.35% 6.73% 4.44%

Earnings and Valuation

This table compares RISE Education Cayman and Career Education’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RISE Education Cayman $148.98 million 5.48 -$7.37 million $0.10 148.50
Career Education $596.43 million 1.52 -$31.89 million $0.31 42.23

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for RISE Education Cayman and Career Education, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RISE Education Cayman 0 0 1 0 3.00
Career Education 0 1 0 0 2.00

RISE Education Cayman presently has a consensus price target of $15.50, suggesting a potential upside of 4.38%. Career Education has a consensus price target of $13.00, suggesting a potential downside of 0.69%. Given RISE Education Cayman’s stronger consensus rating and higher possible upside, analysts plainly believe RISE Education Cayman is more favorable than Career Education.

About RISE Education Cayman

RISE Education Cayman Ltd, through its subsidiaries, provides junior English language training services under the RISE brand name in the People's Republic of China. The company offers a range of educational programs, services, and products, including educational courses, sale of course materials, franchise services, and study tours. It also provides educational consulting services. As of June 30, 2017, the company had a network of 246 learning centers comprising 56 self-owned centers and 190 franchised learning centers across 80 cities in China. RISE Education Cayman Ltd was founded in 2007 and is headquartered in Beijing, China.

About Career Education

Career Education Corporation operates colleges, institutions, and universities that provide education to student population in various career-oriented disciplines through online, campus based, and blended learning programs in the United States. The company operates through three segments: Colorado Technical University (CTU), American InterContinental University (AIU), and All Other Campuses. Its colleges and universities include AIU, CTU, Le Cordon Bleu institutions, Briarcliffe College, Harrington College of Design, and Sanford-Brown College. The company offers doctoral, master's, bachelor's, and associate degrees, as well as diploma and certificate programs. It also provides academic programs in the career-oriented disciplines of business studies, nursing, computer science, engineering, information systems and technologies, cybersecurity, and healthcare management, as well as information technologies, and education and criminal justice; and educational programs in culinary arts, as well as patisserie and baking. As of December 31, 2017, the company had a total student enrollment of approximately 34,800 students. Career Education Corporation was founded in 1994 and is headquartered in Schaumburg, Illinois.

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