GSX Techedu (NYSE:GSX) versus China Online Education Group (NYSE:COE) Head to Head Review

GSX Techedu (NYSE:GSX) and China Online Education Group (NYSE:COE) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.

Valuation and Earnings

This table compares GSX Techedu and China Online Education Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GSX Techedu $59.20 million 56.62 $2.93 million N/A N/A
China Online Education Group $166.61 million 0.85 -$60.61 million N/A N/A

GSX Techedu has higher earnings, but lower revenue than China Online Education Group.

Analyst Ratings

This is a summary of current ratings and price targets for GSX Techedu and China Online Education Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GSX Techedu 0 0 2 0 3.00
China Online Education Group 0 0 0 0 N/A

GSX Techedu presently has a consensus target price of $19.50, suggesting a potential upside of 36.84%. Given GSX Techedu’s higher possible upside, analysts plainly believe GSX Techedu is more favorable than China Online Education Group.

Profitability

This table compares GSX Techedu and China Online Education Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GSX Techedu N/A N/A N/A
China Online Education Group -25.48% N/A -31.25%

Insider and Institutional Ownership

6.6% of GSX Techedu shares are held by institutional investors. Comparatively, 7.2% of China Online Education Group shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

GSX Techedu beats China Online Education Group on 6 of the 8 factors compared between the two stocks.

GSX Techedu Company Profile

GSX Techedu Inc. operates as an online education company in the People's Republic of China. The company provides online K-12 large-class after-school tutoring services. It offers English courses for children in kindergarten; and courses that help children in grade one through grade seven. The company also provides foreign language courses, including English, Japanese, and Korean, as well as English test preparation courses for students taking post-graduate entrance exams in China; and professional courses primarily for working adults preparing for professional qualification exams comprising teacher's qualification, the Chartered Financial Analyst designation, fund qualification, and securities qualification exams. In addition, it offers personal interest courses, such as yoga, fashion, guitar, and Chinese calligraphy. Further, the company provides other courses, including offline business consulting courses, which target principals and other officers of private education institutions who want to enhance management skills; and operate Weishi, an interactive learning platform on Weixin. As of March 31, 2019, it had 169 instructors and 522 tutors. The company was formerly known as BaiJiaHuLian Group Holdings Limited and changed its name to GSX Techedu Inc. in January 2019. GSX Techedu Inc. was founded in 2014 and is headquartered in Beijing, China. GSX Techedu Inc. is a subsidiary of Ebetter International Group Limited.

China Online Education Group Company Profile

China Online Education Group, through its subsidiaries, provides online English language education services to students in the People's Republic of China and the Philippines. It operates online and mobile education platforms that enable students to take live interactive English lessons with international foreign teachers. The company's flagship courses include Classic English and Classic English Junior for the development of English communication skills. It also offers American Academy and Small Class courses; 51 Talk New Concept English course; and various specialty courses, such as Business English, IELTS Speaking, Free-talk, Interview English, Travel English, and Daily English for situation-based English education and test preparation needs. China Online Education Group was founded in 2011 and is headquartered in Beijing, the People's Republic of China.

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