New Oriental Education & Technology Group (NYSE:EDU – Get Free Report) and KinderCare Learning Companies (NYSE:KLC – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.
Risk and Volatility
New Oriental Education & Technology Group has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500. Comparatively, KinderCare Learning Companies has a beta of 3.78, suggesting that its share price is 278% more volatile than the S&P 500.
Valuation & Earnings
This table compares New Oriental Education & Technology Group and KinderCare Learning Companies”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Oriental Education & Technology Group | $5.66 billion | 1.56 | $475.17 million | $2.96 | 18.82 |
| KinderCare Learning Companies | $2.73 billion | 0.10 | -$112.88 million | ($3.98) | -0.59 |
New Oriental Education & Technology Group has higher revenue and earnings than KinderCare Learning Companies. KinderCare Learning Companies is trading at a lower price-to-earnings ratio than New Oriental Education & Technology Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares New Oriental Education & Technology Group and KinderCare Learning Companies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Oriental Education & Technology Group | 8.39% | 11.32% | 5.84% |
| KinderCare Learning Companies | -17.23% | 6.65% | 1.21% |
Analyst Recommendations
This is a summary of current ratings for New Oriental Education & Technology Group and KinderCare Learning Companies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Oriental Education & Technology Group | 0 | 2 | 4 | 1 | 2.86 |
| KinderCare Learning Companies | 4 | 5 | 1 | 0 | 1.70 |
New Oriental Education & Technology Group presently has a consensus target price of $61.92, indicating a potential upside of 11.13%. KinderCare Learning Companies has a consensus target price of $4.13, indicating a potential upside of 76.43%. Given KinderCare Learning Companies’ higher possible upside, analysts plainly believe KinderCare Learning Companies is more favorable than New Oriental Education & Technology Group.
Summary
New Oriental Education & Technology Group beats KinderCare Learning Companies on 11 of the 13 factors compared between the two stocks.
About New Oriental Education & Technology Group
New Oriental Education & Technology Group, Inc. is a holding company, which engages in the provision of private educational services. It operates through the following segments: Educational Services and Test Preparation Courses, Private Label Products and Livestreaming E-Commerce, Overseas Study Consulting Services, and Educational Materials and Distribution. The company was founded by Min Hong Yu and Yong Qiang Qian on November 16, 1993, and is headquartered in Beijing, China.
About KinderCare Learning Companies
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KinderCare Learning Companies Inc. is a provider of high-quality early childhood education by center capacity. KinderCare Learning Companies Inc. is based in PORTLAND, Ore.
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