China Online Education Group (NYSE:COE) and Learning Tree International (OTCMKTS:LTRE) 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 risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
China Online Education Group -17.61% N/A -21.71%
Learning Tree International N/A N/A N/A

Insider and Institutional Ownership

7.2% of China Online Education Group shares are owned by institutional investors. Comparatively, 7.5% of Learning Tree International shares are owned by institutional investors. 57.7% of Learning Tree International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares China Online Education Group and Learning Tree International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Online Education Group $166.61 million 1.84 -$60.61 million N/A N/A
Learning Tree International $64.32 million 0.09 -$2.05 million N/A N/A

Learning Tree International has lower revenue, but higher earnings than China Online Education Group.

Volatility and Risk

China Online Education Group has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Learning Tree International has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for China Online Education Group and Learning Tree International, as provided by MarketBeat.com.

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

China Online Education Group currently has a consensus price target of $14.00, suggesting a potential downside of 6.67%. Given China Online Education Group’s higher probable upside, equities analysts plainly believe China Online Education Group is more favorable than Learning Tree International.

China Online Education Group Company Profile

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.

Learning Tree International Company Profile

Learning Tree International, Inc., together with its subsidiaries, develops, markets, and delivers a library of instructor-led classroom courses for professional development needs of information technology (IT) professionals and managers worldwide. It offers education and training courses across a range of technical and management disciplines, such as operating systems, databases, computer networks, cyber and network security, Web development, programming languages, software engineering, open source applications, project management, business skills, leadership, and professional development. The company also provides courses through its proprietary live online learning platform, Learning Tree AnyWare that allow individuals at any location to participate online in instructor-led classes conducted live in its Education Centers, at customer locations, or at other facilities; and workforce optimization solutions to support an IT organization’s life-cycle of workforce development needs. As of September 29, 2018, its library of instructor-led courses comprised 299 instructor-led course titles, including 181 multi-day IT course titles, 82 multi-day management course titles, and 36 one-day course titles. The company markets and sells its course offerings through direct and electronic mail, telemarketing, and field sales channels. It serves national and multinational companies, government organizations, and small and medium-size companies. The company was founded in 1974 and is headquartered in Herndon, Virginia. Learning Tree International, Inc. is a subsidiary of The Kevin Ross Gruneich Legacy Trust.



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