New Oriental Education & Technology Group (NYSE:EDU – Get Free Report) and Classover (NASDAQ:KIDZ – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.
Profitability
This table compares New Oriental Education & Technology Group and Classover’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Oriental Education & Technology Group | 8.44% | 12.01% | 6.16% |
| Classover | -338.62% | -167.79% | -59.29% |
Earnings and Valuation
This table compares New Oriental Education & Technology Group and Classover”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Oriental Education & Technology Group | $5.66 billion | 1.46 | $475.17 million | $3.20 | 16.63 |
| Classover | $3.37 million | 0.29 | -$7.05 million | $99.95 | 0.01 |
New Oriental Education & Technology Group has higher revenue and earnings than Classover. Classover is trading at a lower price-to-earnings ratio than New Oriental Education & Technology Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and price targets for New Oriental Education & Technology Group and Classover, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Oriental Education & Technology Group | 0 | 2 | 2 | 1 | 2.80 |
| Classover | 1 | 0 | 0 | 0 | 1.00 |
New Oriental Education & Technology Group currently has a consensus price target of $60.75, suggesting a potential upside of 14.13%. Given New Oriental Education & Technology Group’s stronger consensus rating and higher possible upside, research analysts plainly believe New Oriental Education & Technology Group is more favorable than Classover.
Insider & Institutional Ownership
74.7% of Classover shares are held by institutional investors. 15.5% of New Oriental Education & Technology Group shares are held by insiders. Comparatively, 0.1% of Classover shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
New Oriental Education & Technology Group has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, Classover has a beta of -0.59, indicating that its share price is 159% less volatile than the S&P 500.
Summary
New Oriental Education & Technology Group beats Classover on 12 of the 14 factors compared between the two stocks.
About New Oriental Education & Technology Group
New Oriental Education & Technology Group is a China-based education company that provides language training, test preparation, tutoring and other learning services. Its offerings have included preparation for overseas exams, domestic entrance examinations and English-language study, as well as study-abroad consulting and educational materials. Founded in Beijing in 1993 by educator Michael Yu (Yu Minhong), the company has expanded its services across China and developed online learning products alongside in-person instruction.
About Classover
Classover Holdings Limited (NASDAQ: KIDZ) is an education company that provides extracurricular learning programs for children and teenagers. Its services are designed to supplement traditional schooling through instructor-led classes and interactive educational experiences. The company offers courses in areas that may include science, technology, engineering and mathematics, languages, arts, music, and other enrichment subjects. Classover’s programs are delivered primarily through online learning formats, with an emphasis on live instruction and engagement between students and teachers.
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