Reviewing Lixiang Education (NASDAQ:LXEH) & QuantaSing Group (NASDAQ:QSG)

Lixiang Education (NASDAQ:LXEH) and QuantaSing Group (NASDAQ:QSG) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Insider & Institutional Ownership

0.5% of Lixiang Education shares are held by institutional investors. 75.0% of Lixiang Education shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Lixiang Education and QuantaSing Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lixiang Education	$4.41 million	0.04	-$17.43 million	N/A	N/A
QuantaSing Group	$2.73 billion	0.04	$50.08 million	$0.90	2.61

QuantaSing Group has higher revenue and earnings than Lixiang Education.

Profitability

This table compares Lixiang Education and QuantaSing Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lixiang Education	N/A	N/A	N/A
QuantaSing Group	13.13%	47.31%	21.93%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Lixiang Education and QuantaSing Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lixiang Education	1	0	0	0	1.00
QuantaSing Group	0	1	1	0	2.50

QuantaSing Group has a consensus target price of $9.52, suggesting a potential upside of 305.11%. Given QuantaSing Group’s stronger consensus rating and higher possible upside, analysts clearly believe QuantaSing Group is more favorable than Lixiang Education.

Volatility and Risk

Lixiang Education has a beta of -0.46, indicating that its share price is 146% less volatile than the S&P 500. Comparatively, QuantaSing Group has a beta of -0.98, indicating that its share price is 198% less volatile than the S&P 500.

Summary

QuantaSing Group beats Lixiang Education on 9 of the 12 factors compared between the two stocks.

About Lixiang Education

Lixiang Education Holding Co., Ltd. provides primary and middle school education services from grade 1 to grade 9 in the People's Republic of China. As of December 31, 2020, the company operated two campuses, including Baiyun Campus and Yijing Campus. It also engages in the operation of food procurement. The company was formerly known as Lianwai Education Group Limited and changed its name to Lixiang Education Holding Co., Ltd. in May 26, 2020. The company was founded in 2001 and is headquartered in Lishui, the People's Republic of China.

About QuantaSing Group

QuantaSing Group Limited provides online learning services in the People's Republic of China. The company offers online courses, including financial literacy, short-video production, personal well-being, electronic keyboard, and meditation courses. It also offers marketing and enterprise talent management services to enterprise customers. In addition, the company provides online and literacy course to adult learners under various brands, including QiNiu, JiangZhen, and QianChi. QuantaSing Group Limited was founded in 2019 and is headquartered in Beijing, the People's Republic of China.