Contrasting Four Seasons Edu (Cayman) (FEDU) and The Competition

Four Seasons Edu (Cayman) (NYSE: FEDU) is one of 42 publicly-traded companies in the “Educational services” industry, but how does it compare to its peers? We will compare Four Seasons Edu (Cayman) to related businesses based on the strength of its dividends, analyst recommendations, profitability, earnings, institutional ownership, risk and valuation.

Dividends

Four Seasons Edu (Cayman) pays an annual dividend of $0.40 per share and has a dividend yield of 7.0%. Four Seasons Edu (Cayman) pays out 210.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Educational services” companies pay a dividend yield of 1.4% and pay out 46.4% of their earnings in the form of a dividend.

Profitability

This table compares Four Seasons Edu (Cayman) and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Four Seasons Edu (Cayman) N/A N/A N/A
Four Seasons Edu (Cayman) Competitors -13.55% -29.99% -7.55%

Valuation & Earnings

This table compares Four Seasons Edu (Cayman) and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Four Seasons Edu (Cayman) $47.49 million $7.01 million 30.16
Four Seasons Edu (Cayman) Competitors $535.20 million $32.77 million 14.38

Four Seasons Edu (Cayman)’s peers have higher revenue and earnings than Four Seasons Edu (Cayman). Four Seasons Edu (Cayman) is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

60.1% of Four Seasons Edu (Cayman) shares are held by institutional investors. Comparatively, 54.3% of shares of all “Educational services” companies are held by institutional investors. 24.4% of shares of all “Educational services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Four Seasons Edu (Cayman) and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Four Seasons Edu (Cayman) 0 0 0 0 N/A
Four Seasons Edu (Cayman) Competitors 149 655 743 18 2.40

As a group, “Educational services” companies have a potential upside of 3.70%. Given Four Seasons Edu (Cayman)’s peers higher possible upside, analysts clearly believe Four Seasons Edu (Cayman) has less favorable growth aspects than its peers.

Summary

Four Seasons Edu (Cayman) beats its peers on 6 of the 11 factors compared.

About Four Seasons Edu (Cayman)

Four Seasons Education (Cayman) Inc., together with its subsidiaries, provides after-school education services for kindergarten, elementary, and middle school students in the People's Republic of China. The company also offers education and management consulting services. It operates 27 learning centers in Shanghai and 6 learning centers in other cities. The company was founded in 2007 and is headquartered in Shanghai, China.

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