Critical Review: Laureate Education (NASDAQ:LAUR) & East Buy (OTCMKTS:KLTHF)

Laureate Education (NASDAQ:LAUR) and East Buy (OTCMKTS:KLTHF) are both consumer discretionary 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Laureate Education	7.26%	12.69%	5.54%
East Buy	N/A	N/A	N/A

Institutional and Insider Ownership

96.3% of Laureate Education shares are held by institutional investors. 2.2% of Laureate Education shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Laureate Education and East Buy’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Laureate Education	$1.48 billion	1.49	$107.59 million	$0.64	21.86
East Buy	N/A	N/A	N/A	N/A	N/A

Laureate Education has higher revenue and earnings than East Buy.

Analyst Ratings

This is a summary of recent ratings and price targets for Laureate Education and East Buy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Laureate Education	0	0	2	0	3.00
East Buy	0	0	0	0	N/A

Laureate Education currently has a consensus price target of $17.00, indicating a potential upside of 21.52%. Given Laureate Education’s higher probable upside, equities research analysts plainly believe Laureate Education is more favorable than East Buy.

Summary

Laureate Education beats East Buy on 8 of the 8 factors compared between the two stocks.

About Laureate Education

Laureate Education, Inc., together with its subsidiaries, offers higher education programs and services to students through a network of universities and higher education institutions. The company provides a range of undergraduate and graduate degree programs 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 offers specialized courses for technical and vocational training; and senior high school. Its services are provides in Mexico, Peru, and the United States. The company was formerly known as Sylvan Learning Systems, Inc. and changed its name to Laureate Education, Inc. in May 2004. Laureate Education, Inc. was founded in 1989 and is headquartered in Miami, Florida.

About East Buy

East Buy Holding Limited, an investment holding company, primarily engages in the provision of online education services in China. The company operates through Private Label Products and Livestreaming E-Commerce, College Education, and Institutional Customers segments. The Private Label Products and Livestreaming E-Commerce segment operates an online livestreaming e-commerce platform under its private label, East Buy, which sells agricultural and other products to individual customers. The College Education segment offers online education services for the preparation of postgraduate entrance exams, TOEFL, and IELTS, as well as English learning courses to college and above students, and working professionals. The Institutional Customers segment provides online education services comprising digital library construction services to institutional customers, including colleges and universities, public libraries, telecom operators, and online video streaming providers. It also offers software and technology, education advisory, and human resources and related services, as well as invests in equity fund. The company was formerly known as Koolearn Technology Holding Limited and changed its name to East Buy Holding Limited in February 2023. The company was founded in 2005 and is headquartered in Beijing, China. East Buy Holding Limited operates as a subsidiary of New Oriental Education & Technology Group Inc.