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

Insider and Institutional Ownership

4.7% of RISE Education Cayman shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares RISE Education Cayman and Xueda Education Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RISE Education Cayman $104.87 million 8.07 $7.95 million $0.27 56.96
Xueda Education Group N/A N/A N/A ($0.15) -36.27

RISE Education Cayman has higher revenue and earnings than Xueda Education Group. Xueda Education Group is trading at a lower price-to-earnings ratio than RISE Education Cayman, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for RISE Education Cayman and Xueda Education Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RISE Education Cayman 0 0 1 0 3.00
Xueda Education Group 0 0 0 0 N/A

RISE Education Cayman currently has a consensus target price of $15.50, indicating a potential upside of 0.78%. Given RISE Education Cayman’s higher probable upside, equities research analysts clearly believe RISE Education Cayman is more favorable than Xueda Education Group.


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

Net Margins Return on Equity Return on Assets
RISE Education Cayman N/A N/A N/A
Xueda Education Group -4.53% -15.97% -4.86%


RISE Education Cayman beats Xueda Education Group on 9 of the 9 factors compared between the two stocks.

About RISE Education Cayman

RISE Education Cayman Ltd is a holding company. The Company, through its subsidiaries, offers after-school English teaching and tutoring services to students aged three to 18. It operates in China’s junior English Language Training (ELT) market. Its offers three flagship courses, including Rise Start, Rise On and Rise Up, that are designed for students aged three to six, seven to twelve and 13 to 18, respectively. As of June 30, 2017, the Company had a network of 246 learning centers across 80 cities in China, among which 56 were self-owned centers and 190 centers were franchised learning centers. Its suite of products comprises both online and offline coursework. Its also offers a series of complementary products to students from both self-owned learning centers and franchised learning centers, including online products Can-Talk and Rise Library Online, and offline products Rise Camp, Rise Workshop and Rise Overseas Study Tour.

About Xueda Education Group

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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