GSX Techedu (NYSE:GSX) vs. RYB Education (NYSE:RYB) Head to Head Comparison

GSX Techedu (NYSE:GSX) and RYB Education (NYSE:RYB) are both business services companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.

Profitability

This table compares GSX Techedu and RYB Education’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GSX Techedu 11.44% 22.37% 11.02%
RYB Education -16.15% -25.22% -7.55%

Earnings and Valuation

This table compares GSX Techedu and RYB Education’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GSX Techedu $303.78 million 44.64 $32.56 million $0.13 443.46
RYB Education $182.28 million 0.43 -$2.43 million $0.05 55.20

GSX Techedu has higher revenue and earnings than RYB Education. RYB Education is trading at a lower price-to-earnings ratio than GSX Techedu, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for GSX Techedu and RYB Education, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GSX Techedu 2 2 5 0 2.33
RYB Education 0 0 0 0 N/A

GSX Techedu currently has a consensus target price of $43.06, indicating a potential downside of 25.30%. Given GSX Techedu’s higher probable upside, research analysts plainly believe GSX Techedu is more favorable than RYB Education.

Institutional & Insider Ownership

20.2% of GSX Techedu shares are owned by institutional investors. Comparatively, 9.4% of RYB Education shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

GSX Techedu beats RYB Education on 11 of the 11 factors compared between the two stocks.

About GSX Techedu

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.

About RYB Education

RYB Education, Inc. provides early childhood education service in the People's Republic of China. The company offers kindergarten services to 2-6-year-old children; and play-and-learn centers services for the joint participation of 0-6-year-old children and their families to promote children's development and prepare them for their entry into kindergartens and primary schools. It also develops and sells educational products and services, such as teaching aids, educational toys, at-home educational products, and school uniforms through franchisees and alliance participants, as well as directly to a market of families. As of December 31, 2017, it operated 85 directly operated and 210 franchise kindergartens; and 953 play-and-learn centers. The company was formerly known as Top Margin Limited and changed its name to RYB Education, Inc. in June 2017. RYB Education, Inc. was founded in 1998 and is based in Beijing, China.

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