Head-To-Head Analysis: Four Seasons Edu (Cayman) (NYSE:FEDU) vs. GSX Techedu (NYSE:GSX)

GSX Techedu (NYSE:GSX) and Four Seasons Edu (Cayman) (NYSE:FEDU) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.

Institutional and Insider Ownership

9.9% of GSX Techedu shares are held by institutional investors. Comparatively, 11.2% of Four Seasons Edu (Cayman) shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares GSX Techedu and Four Seasons Edu (Cayman)’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GSX Techedu $59.20 million 73.30 $2.93 million N/A N/A
Four Seasons Edu (Cayman) $50.16 million 1.82 -$90,000.00 N/A N/A

GSX Techedu has higher revenue and earnings than Four Seasons Edu (Cayman).

Analyst Ratings

This is a summary of recent ratings and price targets for GSX Techedu and Four Seasons Edu (Cayman), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GSX Techedu 0 0 2 0 3.00
Four Seasons Edu (Cayman) 0 0 0 0 N/A

GSX Techedu currently has a consensus price target of $21.00, indicating a potential upside of 13.82%. Given GSX Techedu’s higher probable upside, equities research analysts plainly believe GSX Techedu is more favorable than Four Seasons Edu (Cayman).

Profitability

This table compares GSX Techedu and Four Seasons Edu (Cayman)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GSX Techedu N/A N/A N/A
Four Seasons Edu (Cayman) 1.88% 0.88% 0.63%

Summary

GSX Techedu beats Four Seasons Edu (Cayman) on 5 of the 9 factors compared between the two stocks.

GSX Techedu Company Profile

GSX Techedu Inc. operates as an online education company in the People's Republic of China. The company provides online K-12 large-class after-school tutoring services. It offers English courses for children in kindergarten; and courses that help children in grade one through grade seven. The company also provides foreign language courses, including English, Japanese, and Korean, as well as English test preparation courses for students taking post-graduate entrance exams in China; and professional courses primarily for working adults preparing for professional qualification exams comprising teacher's qualification, the Chartered Financial Analyst designation, fund qualification, and securities qualification exams. In addition, it offers personal interest courses, such as yoga, fashion, guitar, and Chinese calligraphy. Further, the company provides other courses, including offline business consulting courses, which target principals and other officers of private education institutions who want to enhance management skills; and operate Weishi, an interactive learning platform on Weixin. As of March 31, 2019, it had 169 instructors and 522 tutors. The company was formerly known as BaiJiaHuLian Group Holdings Limited and changed its name to GSX Techedu Inc. in January 2019. GSX Techedu Inc. was founded in 2014 and is headquartered in Beijing, China. GSX Techedu Inc. is a subsidiary of Ebetter International Group Limited.

Four Seasons Edu (Cayman) Company Profile

Four Seasons Education (Cayman) Inc., together with its subsidiaries, provides after-school education services in the People's Republic of China. The company's education services comprise standard programs; personalized Ivy programs; and special programs, including competition workshops and courses delivered to K-12 schools. It also offers education and management consulting services. The company offers after-school education services for kindergarten, elementary, and middle school students. As of February 28, 2018, the company operated 31 learning centers in Shanghai and 7 in other cities. Four Seasons Education (Cayman) Inc. was founded in 2007 and is based in Shanghai, the People's Republic of China.

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