New Oriental Education & Tech Grp (NYSE:EDU) and Scientific Learning (OTCMKTS:SCIL) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.
Insider & Institutional Ownership
86.7% of New Oriental Education & Tech Grp shares are held by institutional investors. 15.5% of New Oriental Education & Tech Grp shares are held by insiders. Comparatively, 16.1% of Scientific Learning shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares New Oriental Education & Tech Grp and Scientific Learning’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|New Oriental Education & Tech Grp||7.69%||12.97%||6.62%|
Risk and Volatility
New Oriental Education & Tech Grp has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, Scientific Learning has a beta of -0.52, meaning that its share price is 152% less volatile than the S&P 500.
Valuation and Earnings
This table compares New Oriental Education & Tech Grp and Scientific Learning’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|New Oriental Education & Tech Grp||$3.10 billion||5.01||$238.07 million||$1.50||72.56|
|Scientific Learning||$16.74 million||0.33||-$870,000.00||N/A||N/A|
New Oriental Education & Tech Grp has higher revenue and earnings than Scientific Learning.
This is a summary of current ratings and target prices for New Oriental Education & Tech Grp and Scientific Learning, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|New Oriental Education & Tech Grp||0||1||8||0||2.89|
New Oriental Education & Tech Grp currently has a consensus price target of $91.33, indicating a potential downside of 16.09%. Given New Oriental Education & Tech Grp’s higher probable upside, analysts plainly believe New Oriental Education & Tech Grp is more favorable than Scientific Learning.
New Oriental Education & Tech Grp beats Scientific Learning on 10 of the 11 factors compared between the two stocks.
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. It operates through Language Training and Test Preparation Courses, and Others segments. The company 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. It also provides language training courses, including English, as well as other foreign languages, such as German, Japanese, French, Korean, Italian, and Spanish; operates a full-time private primary and secondary 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 that include college, K-12, and pre-school education. In addition, the company 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, 2018, it offered educational programs, services, and products to students through a network of 87 schools, 994 learning centers, and 18 bookstores. The company was founded in 1993 and is headquartered in Beijing, the People’s Republic of China.
Scientific Learning Company Profile
Scientific Learning Corporation, an education company, develops, distributes, and licenses technology that accelerates learning by enhancing the processing efficiency of the brain. Its flagship Fast ForWord, a Web-based product, comprises Fast ForWord Language for elementary learners and Fast ForWord Literacy for adolescent learners that build foundational reading and language skills to help districts move below grade level learners to learn in the general classroom, and Fast ForWord Reading, which builds learning capacity through developing cognitive skills using exercises focusing on phonemic awareness, phonics and decoding, spelling, vocabulary, fluency, and comprehension. The company also provides Reading Assistant that offers a one-on-one reading tutor for learners; ResultsNow!, an online hosting and support solution for its Fast ForWord and Reading Assistant products; and BrainPro services targeted at learners who are below grade level. In addition, it offers on-site product training, technical installation, implementation management, consulting, and Web-based synchronous and asynchronous professional development services; and software technical update releases, as well as extensive telephone, email, and chat support services. The company offers learning solutions primarily to educational institutions, speech and language clinics, learning centers, and parents. Scientific Learning Corporation was founded in 1995 and is headquartered in Oakland, California.
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