Head-To-Head Review: Education Management (EDMC) vs. New Oriental Education & Tech Grp (EDU)

Education Management (OTCMKTS: EDMC) and New Oriental Education & Tech Grp (NYSE:EDU) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Valuation and Earnings

This table compares Education Management and New Oriental Education & Tech Grp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Education Management N/A N/A N/A N/A N/A
New Oriental Education & Tech Grp $1.80 billion 8.00 $274.45 million $1.74 58.00

New Oriental Education & Tech Grp has higher revenue and earnings than Education Management.

Institutional and Insider Ownership

0.0% of Education Management shares are owned by institutional investors. Comparatively, 85.9% of New Oriental Education & Tech Grp shares are owned by institutional investors. 81.2% of Education Management shares are owned by insiders. Comparatively, 15.5% of New Oriental Education & Tech Grp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Education Management and New Oriental Education & Tech Grp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Education Management N/A N/A N/A
New Oriental Education & Tech Grp 12.83% 15.23% 8.74%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Education Management and New Oriental Education & Tech Grp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Education Management 0 0 0 0 N/A
New Oriental Education & Tech Grp 1 1 6 0 2.63

New Oriental Education & Tech Grp has a consensus target price of $104.82, indicating a potential upside of 3.87%. Given New Oriental Education & Tech Grp’s higher possible upside, analysts plainly believe New Oriental Education & Tech Grp is more favorable than Education Management.

Risk and Volatility

Education Management has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500. Comparatively, New Oriental Education & Tech Grp has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.

Summary

New Oriental Education & Tech Grp beats Education Management on 8 of the 9 factors compared between the two stocks.

Education Management Company Profile

Education Management Corporation provides post-secondary education in North America. It offers academic programs to students through campus-based and online instruction to earn undergraduate and graduate degrees, and various specialized non-degree diplomas in a range of disciplines comprising business, culinary, design, education, fashion, health sciences, information technology, legal, media arts, and psychology and behavioral sciences. The company was founded in 1962 and is headquartered in Pittsburgh, Pennsylvania.

New Oriental Education & Tech Grp Company Profile

New Oriental Education & Technology Group Inc. provides private educational services under the New Oriental brand in the People's Republic of China. The company operates through Language Training and Test Preparation, Primary and Secondary School Education, Online Education, Content Development and Distribution, Pre-School Education, Overseas Study Consulting Services, and Study Tour segments. It offers test preparation courses to students taking language and entrance exams used by educational institutions in the United States, the People's Republic of China, and the Commonwealth countries; and after-school tutoring courses for middle and high school students to achieve better scores on entrance exams for admission into high schools or higher education institutions, as well as for children to teach English. The company also provides language training courses consisting of English, as well as other foreign languages, such as German, Japanese, French, Korean, Italian, and Spanish; operates full-time private primary and secondary boarding school in Yangzhou seeking a full curriculum taught in Chinese and English; develops and edits educational materials for language training and test preparation comprising books, software, CD-ROMs, magazines, and other periodicals; and offers online education programs on its Websites koolearn.com and koo.cn. In addition, it offers overseas studies consulting; pre-school education; and a pilot program that permits third parties in small cities to provide its English and kindergarten programs, as well as overseas study tour services. As of May 31, 2017, the company offered educational programs, services, and products to students through a network of 77 schools, 855 learning centers, and 20 bookstores. The company was founded in 1993 and is headquartered in Beijing, the People's Republic of China.

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