Head to Head Review: Puxin (NEW) & Laureate Education (LAUR)

Puxin (NYSE:NEW) and Laureate Education (NASDAQ:LAUR) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.

Earnings and Valuation

This table compares Puxin and Laureate Education’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Puxin $324.07 million 1.75 -$121.21 million N/A N/A
Laureate Education $3.35 billion 1.01 $370.07 million $1.73 8.73

Laureate Education has higher revenue and earnings than Puxin.

Profitability

This table compares Puxin and Laureate Education’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Puxin -38.08% -191.04% -29.35%
Laureate Education 9.66% 5.73% 1.61%

Analyst Recommendations

This is a summary of recent ratings for Puxin and Laureate Education, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Puxin 0 0 1 0 3.00
Laureate Education 0 1 3 0 2.75

Puxin presently has a consensus price target of $26.00, indicating a potential upside of 278.46%. Laureate Education has a consensus price target of $18.63, indicating a potential upside of 23.26%. Given Puxin’s stronger consensus rating and higher possible upside, research analysts plainly believe Puxin is more favorable than Laureate Education.

Institutional & Insider Ownership

8.7% of Puxin shares are held by institutional investors. Comparatively, 43.1% of Laureate Education shares are held by institutional investors. 4.6% of Laureate Education shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Laureate Education beats Puxin on 8 of the 11 factors compared between the two stocks.

Puxin Company Profile

Puxin Limited, through its subsidiaries, provides after-school education services in China. It offers a range of K-12 and study-abroad tutoring programs designed to help students prepare for admission tests and applications for top schools, universities, and graduate programs in China and other countries. The company also provides group class courses; personalized tutoring courses; English tutoring services for children in kindergarten; and extra-curricular courses to students, such as painting, calligraphy, music, debate, and science, as well as offers Web-based and mobile-based platforms for K-12 tutoring services. In addition, it sells education materials; and provides advertisement, study consulting, and training services. As of March 31, 2018, the company had a network of 397 learning centers; and 4 schools providing extra-curricular education courses. Puxin Limited was founded in 2014 and is headquartered in Beijing, China.

Laureate Education Company Profile

Laureate Education, Inc., together with its subsidiaries, provides higher education programs and services to students through universities and higher education institutions. It operates through six segments: Brazil, Mexico, Andean & Iberian, Central America & U.S. Campuses, EMEAA, and Online & Partnerships. The company offers a range of undergraduate and graduate degree programs primarily in the areas of business and management, medicine and health sciences, and engineering and information technology through campus-based, online, and hybrid programs. It also operates online institutions that offer professionally-oriented degree programs primarily for the working adults with undergraduate and graduate degree programs. The company was formerly known as Sylvan Learning Systems, Inc. and changed its name to Laureate Education, Inc. in May 2004. The company was founded in 1989 and is headquartered in Baltimore, Maryland. Laureate Education, Inc. is a subsidiary of Wengen Alberta, Limited Partnership.

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