K12 (NYSE: ONE) and OneSmart International Edun Gr (NYSE:ONE) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

Earnings and Valuation

This table compares K12 and OneSmart International Edun Gr’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
K12 $917.73 million 0.73 $27.62 million $0.68 24.93
OneSmart International Edun Gr $311.32 million 4.19 $39.16 million N/A N/A

OneSmart International Edun Gr has lower revenue, but higher earnings than K12.

Institutional and Insider Ownership

82.7% of K12 shares are owned by institutional investors. Comparatively, 20.0% of OneSmart International Edun Gr shares are owned by institutional investors. 18.3% of K12 shares are owned by insiders. Comparatively, 12.7% of OneSmart International Edun Gr shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for K12 and OneSmart International Edun Gr, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
K12 0 0 2 0 3.00
OneSmart International Edun Gr 0 2 0 0 2.00

K12 presently has a consensus price target of $20.50, suggesting a potential upside of 20.94%. OneSmart International Edun Gr has a consensus price target of $14.80, suggesting a potential upside of 85.00%. Given OneSmart International Edun Gr’s higher possible upside, analysts plainly believe OneSmart International Edun Gr is more favorable than K12.

Profitability

This table compares K12 and OneSmart International Edun Gr’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
K12 3.01% 4.72% 3.67%
OneSmart International Edun Gr N/A N/A N/A

Summary

K12 beats OneSmart International Edun Gr on 8 of the 11 factors compared between the two stocks.

About K12

K12 Inc., a technology-based education company, together with its subsidiaries, provides online curriculum, software systems, and educational services to facilitate individualized learning for students primarily in kindergarten through 12th grade in the United States and internationally. The company also offers curriculum and technology solutions for full-time virtual and blended programs; full-time virtual programs, semester courses, and supplemental educational products; teacher training, teaching, and other academic and technology support services to public schools, school districts, private schools, charter schools, early childhood learning centers, and corporate partners. In addition, it provides FuelEd suite of offerings, such as K12 curriculum, FuelEd online courses, and FuelEd anywhere learning systems; Middlebury interactive languages; Stride; and the Big Universe literacy solution. Further, the company operates online private schools, including The K12 International Academy, the George Washington University Online High School, and the Keystone School. Additionally, it provides access to the online lessons and curriculum through proprietary learning management system; learning kits; student computers; and management, technology, and educational services. The company sells individual K-8 online courses and supplemental educational products directly to families. K12 Inc. was founded in 2000 and is headquartered in Herndon, Virginia.

About OneSmart International Edun Gr

OneSmart International Education Group Limited provides tutoring services for kindergarten and primary, middle, and high schools in the People's Republic of China. It offers young children services, including Chinese language and computer programming under the HappyMath brand; and English tutoring services focusing on early childhood under the brand FasTrack English brand. The company also provides language and culture programs, such as English language study under the OneSmart Elite English brand; overseas study test preparation services under the OneSmart overseas Language Training brand; and summer and winter study tours under the OneSmart Study Camp brand. As of November 30, 2017, it operated a network of 225 study centers across 42 cities in China. The company was formerly known as OneSmart Education Group Limited. OneSmart International Education Group Limited was incorporated in 2017 and is headquartered in Shanghai, the People's Republic of China.

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