RISE Education Cayman (REDU) & Tarena International (TEDU) Head-To-Head Comparison

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

Insider and Institutional Ownership

10.6% of RISE Education Cayman shares are held by institutional investors. Comparatively, 33.6% of Tarena International shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares RISE Education Cayman and Tarena International’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
Tarena International 9.47% 11.79% 8.39%

Valuation & Earnings

This table compares RISE Education Cayman and Tarena International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RISE Education Cayman $148.98 million 6.00 -$7.37 million $0.10 162.40
Tarena International $292.13 million 1.81 $27.35 million $0.46 20.43

Tarena International has higher revenue and earnings than RISE Education Cayman. Tarena International 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 current ratings and recommmendations for RISE Education Cayman and Tarena International, 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
Tarena International 0 4 0 0 2.00

RISE Education Cayman presently has a consensus target price of $15.50, indicating a potential downside of 4.56%. Tarena International has a consensus target price of $16.21, indicating a potential upside of 72.47%. Given Tarena International’s higher probable upside, analysts plainly believe Tarena International is more favorable than RISE Education Cayman.

Dividends

Tarena International pays an annual dividend of $0.14 per share and has a dividend yield of 1.5%. RISE Education Cayman does not pay a dividend. Tarena International pays out 30.4% of its earnings in the form of a dividend.

Summary

Tarena International beats RISE Education Cayman on 9 of the 14 factors compared between the two stocks.

RISE Education Cayman Company Profile

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.

Tarena International Company Profile

Tarena International, Inc., through its subsidiaries, provides professional education services through part-time and full-time classes in the People's Republic of China. It offers education courses in 12 information technology (IT) subjects, such as Java, .NET, C++, software testing, PHP, embedded, Android, iOS, Big Data, Web front-end development, Linux and network engineering, and VR/AR; and 3 non-IT subjects comprising digital art, online sales and marketing, and accounting through live distance instruction, classroom-based tutoring, and online learning modules. The company also provides three kid education programs, including Tongcheng, Tongmei, and Tongchuang. As of December 31, 2016, it delivers professional education lectures through a network of 145 directly managed learning centers in 46 cities. Tarena International, Inc. was founded in 2002 and is headquartered in Beijing, the People's Republic of China.

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