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

Profitability

This table compares Xueda Education Group and Strayer Education’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%
Strayer Education 7.90% 17.65% 11.15%

Dividends

Strayer Education pays an annual dividend of $1.00 per share and has a dividend yield of 1.2%. Xueda Education Group does not pay a dividend. Strayer Education pays out 31.2% of its earnings in the form of a dividend.

Insider & Institutional Ownership

93.0% of Strayer Education shares are held by institutional investors. 6.7% of Strayer Education shares are held 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.

Valuation & Earnings

This table compares Xueda Education Group and Strayer Education’s gross 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
Strayer Education $449.07 million 2.00 $77.90 million $3.21 26.14

Strayer Education has higher revenue and earnings than Xueda Education Group.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Xueda Education Group and Strayer Education, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xueda Education Group 0 0 0 0 N/A
Strayer Education 0 2 1 0 2.33

Strayer Education has a consensus price target of $94.00, suggesting a potential upside of 12.01%. Given Strayer Education’s higher possible upside, analysts clearly believe Strayer Education is more favorable than Xueda Education Group.

Summary

Strayer Education beats Xueda Education Group on 9 of the 10 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.

Strayer Education Company Profile

Strayer Education, Inc. is an education services holding company. The Company provides post-secondary education and other academic programs, through its subsidiaries, Strayer University (the University) and New York Code and Design Academy (NYCDA). As of December 31, 2016, the University offered undergraduate and graduate degree programs in business administration, accounting, information technology, education, health services administration, nursing, public administration and criminal justice at 74 physical campuses located in the Mid-Atlantic and Southern regions of the United States, and online. The University also offers an executive Master of Business Administration (MBA) online through its Jack Welch Management Institute. Its subsidiary, NYCDA, provides non-degree courses in Web and application software development, primarily at its campus in New York City. Each undergraduate degree program includes courses in oral and written communication skills, as well as mathematics.

Receive News & Ratings for Xueda Education Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Xueda Education Group and related companies with MarketBeat.com's FREE daily email newsletter.