Critical Analysis: TAL Education Group (TAL) versus Grand Canyon Education (LOPE)
Grand Canyon Education (NASDAQ: LOPE) and TAL Education Group (NYSE:TAL) are both mid-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitabiliy.
This table compares Grand Canyon Education and TAL Education Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Grand Canyon Education||17.97%||21.53%||14.92%|
|TAL Education Group||11.00%||18.23%||7.01%|
Volatility and Risk
Grand Canyon Education has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, TAL Education Group has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500.
Institutional & Insider Ownership
97.5% of Grand Canyon Education shares are owned by institutional investors. Comparatively, 57.6% of TAL Education Group shares are owned by institutional investors. 3.0% of Grand Canyon Education shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Grand Canyon Education and TAL Education Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Grand Canyon Education||$894.59 million||4.04||$297.15 million||$3.38||22.75|
|TAL Education Group||$1.04 billion||11.36||$168.16 million||$1.29||109.72|
Grand Canyon Education has higher revenue, but lower earnings than TAL Education Group. Grand Canyon Education is trading at a lower price-to-earnings ratio than TAL Education Group, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Grand Canyon Education and TAL Education Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Grand Canyon Education||0||0||4||0||3.00|
|TAL Education Group||0||2||9||0||2.82|
Grand Canyon Education presently has a consensus target price of $73.33, suggesting a potential downside of 4.64%. TAL Education Group has a consensus target price of $122.71, suggesting a potential downside of 13.30%. Given Grand Canyon Education’s stronger consensus rating and higher possible upside, research analysts plainly believe Grand Canyon Education is more favorable than TAL Education Group.
Grand Canyon Education beats TAL Education Group on 10 of the 14 factors compared between the two stocks.
About Grand Canyon Education
Grand Canyon Education, Inc. is engaged in the provision of postsecondary education. The Company is a regionally accredited university. The Company offers the degrees, including Doctor of Education, Doctor of Business Administration, Doctor of Nursing Practice, Doctor of Philosophy, Education Specialist, Master of Divinity, Master of Arts, Master of Education, Master of Business Administration and Master of Public Administration, Master of Public Health, Master of Science, Bachelor of Arts, Bachelor of Science, and a range of programs for its degrees. It also offers certificate programs, which consist of a series of courses focused on a particular area of study for both the post-baccalaureate and post-graduate students. The Company offers its ground-based programs to students through three 15-week semesters in a calendar year and to online students in courses that generally range from 5 to 16 weeks throughout the calendar year.
About TAL Education Group
TAL Education Group is a holding company for a group of companies engaged in provision of after-school tutoring programs for primary and secondary school students in the People’s Republic of China (the PRC). The Company is a K-12 after-school tutoring services provider in China. The Company’s Xueersi Peiyou small classes course consists of approximately four semesters, which include approximately two school semesters in Spring and Fall, and approximately two holiday semesters in summer and winter. It operates a Website, www.jzb.com, which is an online education platform in China. It offers personalized premium services under its Zhikang brand. It offers online courses through www.xueersi.com. Through www.xueersi.com, the Company offers online courses on mathematics, English, Chinese, physics, chemistry, biology and other subjects. It also offers select online courses through other Websites. The Company has over 10 call centers in Beijing, Shanghai, Tianjin, Guangzhou and Shenzhen.
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