Analyzing Coursera (NYSE:COUR) & XChange TEC.INC. (NASDAQ:XHG)

XChange TEC.INC. (NASDAQ:XHG) and Coursera (NYSE:COUR) are both small-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.

Volatility & Risk

XChange TEC.INC. has a beta of -1.03, indicating that its stock price is 203% less volatile than the S&P 500. Comparatively, Coursera has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.

Profitability

This table compares XChange TEC.INC. and Coursera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XChange TEC.INC.	N/A	N/A	N/A
Coursera	-6.19%	-4.75%	-3.05%

Valuation & Earnings

This table compares XChange TEC.INC. and Coursera”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XChange TEC.INC.	$41.09 million	0.00	-$32.32 million	N/A	N/A
Coursera	$694.67 million	1.79	-$79.53 million	($0.29)	-25.70

XChange TEC.INC. has higher earnings, but lower revenue than Coursera.

Insider & Institutional Ownership

89.6% of Coursera shares are owned by institutional investors. 0.6% of XChange TEC.INC. shares are owned by company insiders. Comparatively, 16.8% of Coursera shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for XChange TEC.INC. and Coursera, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XChange TEC.INC.	1	0	0	0	1.00
Coursera	1	5	7	0	2.46

Coursera has a consensus target price of $12.45, suggesting a potential upside of 67.11%. Given Coursera’s stronger consensus rating and higher probable upside, analysts plainly believe Coursera is more favorable than XChange TEC.INC..

Summary

Coursera beats XChange TEC.INC. on 8 of the 12 factors compared between the two stocks.

About XChange TEC.INC.

XChange TEC.INC engages in the professional insurance agency business in the People’s Republic of China. The company provides a various insurance products underwritten by insurance companies, including state-owned property and casualty insurance companies, as well as various regional property and casualty insurance companies. It also offers automobile, life, health, group accident, and other property related insurances primarily to individual end consumers. In addition, the company operates a SaaS platform to offer comprehensive services to online customers. It sells insurance primarily through a network of external referral sources that include external registered sales representatives and strategic channel partners, as well as through the in-house sales force. The company was formerly known as FLJ Group Limited and changed its name to XChange TEC.INC in May 2024. XChange TEC.INC was founded in 2012 and is based in Shanghai, the People’s Republic of China.

About Coursera

Coursera, Inc. operates an online educational content platform in the United States, Europe, Africa, the Asia Pacific, the Middle East, and internationally. It operates in three segments: Consumer, Enterprise, and Degrees. The company offers guided projects, courses, and specializations, as well as online degrees; and certificates for entry-level professional, non-entry level professional, university, and MasterTrack. It offers its products to individuals, enterprise, business, campus, and government. The company was formerly known as Dkandu, Inc. and changed its name to Coursera, Inc. in April 2012. Coursera, Inc. was incorporated in 2011 and is headquartered in Mountain View, California.