Xueda Education Group (NYSE: XUE) and Career Education Corporation (NASDAQ:CECO) are both non-cyclical consumer goods & services companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Xueda Education Group N/A N/A N/A N/A N/A
Career Education Corporation $631.21 million 0.94 $46.31 million ($0.36) -23.92

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

Profitability

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

Net Margins Return on Equity Return on Assets
Xueda Education Group -4.53% -15.97% -4.86%
Career Education Corporation -3.82% 3.73% 2.35%

Institutional & Insider Ownership

74.8% of Career Education Corporation shares are owned by institutional investors. 4.9% of Career Education Corporation shares are owned 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.

Analyst Ratings

This is a breakdown of recent ratings for Xueda Education Group and Career Education Corporation, as reported by MarketBeat.

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

Career Education Corporation has a consensus price target of $13.00, suggesting a potential upside of 50.99%. Given Career Education Corporation’s higher probable upside, analysts plainly believe Career Education Corporation is more favorable than Xueda Education Group.

Summary

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

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.

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.

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