Career Education Corporation (NASDAQ: CECO) and Xueda Education Group (NYSE:XUE) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitabiliy and earnings.

Analyst Ratings

This is a summary of current ratings and price targets for Career Education Corporation and Xueda Education Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Career Education Corporation 0 1 1 0 2.50
Xueda Education Group 0 0 0 0 N/A

Career Education Corporation presently has a consensus price target of $13.00, indicating a potential upside of 56.63%. Given Career Education Corporation’s higher probable upside, equities research analysts clearly believe Career Education Corporation is more favorable than Xueda Education Group.

Insider and Institutional Ownership

74.8% of Career Education Corporation shares are held by institutional investors. 4.9% of Career Education Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Career Education Corporation and Xueda Education Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Career Education Corporation $667.62 million 0.86 $55.82 million ($0.25) -33.20
Xueda Education Group N/A N/A N/A N/A N/A

Career Education Corporation has higher revenue and earnings than Xueda Education Group.

Profitability

This table compares Career Education Corporation and Xueda Education Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Career Education Corporation -2.48% 6.03% 3.76%
Xueda Education Group -4.53% -15.97% -4.86%

Summary

Career Education Corporation beats Xueda Education Group on 8 of the 8 factors compared between the two stocks.

Career Education Corporation Company Profile

Career Education Corporation, through its colleges, institutions and universities, offers education to students in a range of career-oriented disciplines through online, on-ground and hybrid learning programs. The Company’s American InterContinental University (AIU) and Colorado Technical University (CTU) provide degree programs through the master’s or doctoral level as well as associate and bachelor’s levels. The Company operates through four segments: CTU, AIU, Culinary Arts and Transitional Group. Its University group consists of AIU and CTU, which serve students online with career-focused degree programs. Its Career Colleges Group consists of Culinary Arts and Transitional Group segments. The Culinary Arts segment includes Le Cordon Bleu institutions in North America (LCB), which offer hands-on educational programs in the career-oriented disciplines of culinary arts and patisserie and baking in the commercial-grade kitchens of Le Cordon Bleu.

Xueda Education Group Company Profile

Xueda Education Group is a holding company. The Company, through its subsidiaries and consolidated variable interest entity (VIE), is engaged in providing private personalized tutoring services for primary and secondary school students in the People’s Republic of China (PRC). The Company has developed and implemented a results-oriented, student-centric service delivery model. The Company’s personalized service model consists of six components: assessment, consultation, formulation of a customized study plan, personalized tutoring, delivery of student-oriented supporting services and results. The Company’s learning centers are directly operated by it under its Xueda brand. The Company delivers its services to students through a national network, consisting of approximately 467 learning centers, all of which are operated by it, in 85 cities in China.

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