China Online Education Group (NYSE:COE) and Puxin (NYSE:NEW) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Insider & Institutional Ownership

8.0% of China Online Education Group shares are held by institutional investors. Comparatively, 8.7% of Puxin shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for China Online Education Group and Puxin, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Online Education Group 0 0 0 0 N/A
Puxin 0 0 1 0 3.00

Puxin has a consensus price target of $26.00, indicating a potential upside of 161.04%. Given Puxin’s higher probable upside, analysts plainly believe Puxin is more favorable than China Online Education Group.

Profitability

This table compares China Online Education Group and Puxin’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Online Education Group -36.42% N/A -46.07%
Puxin -38.08% -191.04% -29.35%

Earnings and Valuation

This table compares China Online Education Group and Puxin’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Online Education Group $166.61 million 0.68 -$60.61 million N/A N/A
Puxin $324.07 million 2.54 -$121.21 million N/A N/A

China Online Education Group has higher earnings, but lower revenue than Puxin.

Summary

Puxin beats China Online Education Group on 6 of the 9 factors compared between the two stocks.

About China Online Education Group

China Online Education Group, through its subsidiaries, provides online English language education services to students in the People’s Republic of China and the Philippines. It operates online and mobile education platforms that enable students to take live interactive English lessons with international foreign teachers. The company’s flagship courses include Classic English and Classic English Junior for the development of English communication skills. It also offers various specialty courses, such as Business English, IELTS Speaking, Free-talk, Interview English, Travel English, and Daily English for situation-based English education and test preparation needs. China Online Education Group was founded in 2011 and is headquartered in Beijing, the People’s Republic of China.

About Puxin

Puxin Limited, through its subsidiaries, provides after-school education services in China. It offers a range of K-12 and study-abroad tutoring programs designed to help students prepare for admission tests and applications for top schools, universities, and graduate programs in China and other countries. The company also provides group class courses; personalized tutoring courses; English tutoring services for children in kindergarten; and extra-curricular courses to students, such as painting, calligraphy, music, debate, and science, as well as offers Web-based and mobile-based platforms for K-12 tutoring services. In addition, it sells education materials; and provides advertisement, study consulting, and training services. As of March 31, 2018, the company had a network of 397 learning centers; and 4 schools providing extra-curricular education courses. Puxin Limited was founded in 2014 and is headquartered in Beijing, China.



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