Head-To-Head Analysis: Career Education Corporation (NASDAQ:CECO) & TAL Education Group (TAL)

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Career Education Corporation and TAL Education Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Career Education Corporation 0 1 1 0 2.50
TAL Education Group 0 2 9 0 2.82

Career Education Corporation presently has a consensus target price of $13.00, indicating a potential upside of 51.87%. TAL Education Group has a consensus target price of $24.52, indicating a potential downside of 16.73%. Given Career Education Corporation’s higher possible upside, research analysts plainly believe Career Education Corporation is more favorable than TAL Education Group.

Profitability

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

Net Margins Return on Equity Return on Assets
Career Education Corporation -3.82% 3.73% 2.35%
TAL Education Group 11.14% 19.47% 7.05%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Career Education Corporation $631.21 million 0.94 $42.44 million ($0.36) -23.78
TAL Education Group $1.17 billion 2.07 $182.99 million $0.24 121.87

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

Risk and Volatility

Career Education Corporation has a beta of 2.67, suggesting that its share price is 167% more volatile than the S&P 500. Comparatively, TAL Education Group has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500.

Institutional & Insider Ownership

74.7% of Career Education Corporation shares are held by institutional investors. Comparatively, 57.6% of TAL Education Group shares are held by institutional investors. 4.9% of Career Education Corporation shares are held by company insiders. Comparatively, 1.8% of TAL Education Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

TAL Education Group beats Career Education Corporation on 10 of the 14 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.

TAL Education Group Company Profile

TAL Education Group is a holding company for a group of companies engaged in provision of after-school tutoring programs for primary and secondary school students in the People’s Republic of China (the PRC). The Company is a K-12 after-school tutoring services provider in China. The Company’s Xueersi Peiyou small classes course consists of approximately four semesters, which include approximately two school semesters in Spring and Fall, and approximately two holiday semesters in summer and winter. It operates a Website, www.jzb.com, which is an online education platform in China. It offers personalized premium services under its Zhikang brand. It offers online courses through www.xueersi.com. Through www.xueersi.com, the Company offers online courses on mathematics, English, Chinese, physics, chemistry, biology and other subjects. It also offers select online courses through other Websites. The Company has over 10 call centers in Beijing, Shanghai, Tianjin, Guangzhou and Shenzhen.

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

Latest News

Leave a Reply