Critical Comparison: OneSmart International Education Group (NYSE:ONE) & 17 Education & Technology Group (NYSE:YQ)

OneSmart International Education Group (NYSE:ONE) and 17 Education & Technology Group (NYSE:YQ) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.

Analyst Recommendations

This is a summary of current ratings for OneSmart International Education Group and 17 Education & Technology Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OneSmart International Education Group 0 1 0 0 2.00
17 Education & Technology Group 0 1 1 0 2.50

17 Education & Technology Group has a consensus target price of $5.30, suggesting a potential upside of 32.17%. Given 17 Education & Technology Group’s stronger consensus rating and higher probable upside, analysts plainly believe 17 Education & Technology Group is more favorable than OneSmart International Education Group.

Insider and Institutional Ownership

30.0% of OneSmart International Education Group shares are held by institutional investors. Comparatively, 4.7% of 17 Education & Technology Group shares are held by institutional investors. 12.7% of OneSmart International Education Group 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.

Profitability

This table compares OneSmart International Education Group and 17 Education & Technology Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OneSmart International Education Group -27.69% -223.48% -10.61%
17 Education & Technology Group N/A N/A N/A

Valuation and Earnings

This table compares OneSmart International Education Group and 17 Education & Technology Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
OneSmart International Education Group $502.22 million 0.47 -$106.58 million ($0.54) -2.72
17 Education & Technology Group $198.37 million 3.88 -$205.35 million ($17.12) -0.23

OneSmart International Education Group has higher revenue and earnings than 17 Education & Technology Group. OneSmart International Education Group is trading at a lower price-to-earnings ratio than 17 Education & Technology Group, indicating that it is currently the more affordable of the two stocks.

Summary

17 Education & Technology Group beats OneSmart International Education Group on 8 of the 13 factors compared between the two stocks.

OneSmart International Education Group Company Profile

OneSmart International Education Group Limited provides tutoring services for the students of kindergarten and primary, middle, and high schools (K12) in the People's Republic of China. The company offers premium tutoring services for exam preparation under OneSmart VIP brand; young children services, including Chinese language, mathematics, science, and computer programming under the HappyMath brand; and English tutoring services focusing on early childhood under the brand FasTrack English brand. It also provides online education courses under the OneSmart Online brand to existing student base from OneSmart VIP, HappyMath, and FasTrack English. As of August 31, 2020, the company operated a network of 480 learning centers across 40 cities in China. The company was formerly known as OneSmart Education Group Limited. OneSmart International Education Group Limited was founded in 2007 and is headquartered in Shanghai, the People's Republic of China.

17 Education & Technology Group Company Profile

17 Education & Technology Group Inc., an education technology company, provides K-12 online education service in the People's Republic of China. It also offers online K-12 large-class after-school tutoring services on development of course syllabi and content and adaptation for live classes areas. The company was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.

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