China Online Education Group (NYSE:COE) and Scientific Learning (OTCMKTS:SCIL) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.
Risk and Volatility
China Online Education Group has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, Scientific Learning has a beta of -0.17, meaning that its stock price is 117% less volatile than the S&P 500.
This table compares China Online Education Group and Scientific Learning’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Online Education Group||-30.36%||N/A||-37.68%|
Institutional & Insider Ownership
7.3% of China Online Education Group shares are held by institutional investors. 16.1% of Scientific Learning shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares China Online Education Group and Scientific Learning’s 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||0.69||-$60.61 million||N/A||N/A|
|Scientific Learning||$16.74 million||0.42||-$870,000.00||N/A||N/A|
Scientific Learning has lower revenue, but higher earnings than China Online Education Group.
This is a breakdown of current recommendations and price targets for China Online Education Group and Scientific Learning, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Online Education Group||0||0||0||0||N/A|
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 American Academy and Small Class courses; 51 Talk New Concept English course; and 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 Scientific Learning
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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