Japan Tob (OTCMKTS:JAPAY) & 17 Education & Technology Group (NYSE:YQ) Financial Comparison

17 Education & Technology Group (NYSE:YQ) and Japan Tob (OTCMKTS:JAPAY) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Valuation and Earnings

This table compares 17 Education & Technology Group and Japan Tob”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
17 Education & Technology Group	$248.49 million	0.14	-$43.92 million	($1.28)	-2.49
Japan Tob	$23.20 billion	3.68	$3.42 billion	$1.37	17.56

Japan Tob has higher revenue and earnings than 17 Education & Technology Group. 17 Education & Technology Group is trading at a lower price-to-earnings ratio than Japan Tob, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares 17 Education & Technology Group and Japan Tob’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
17 Education & Technology Group	-113.55%	-38.90%	-28.18%
Japan Tob	N/A	N/A	N/A

Institutional and Insider Ownership

3.5% of 17 Education & Technology Group shares are owned by institutional investors. 23.1% of 17 Education & Technology Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

17 Education & Technology Group has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Japan Tob has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for 17 Education & Technology Group and Japan Tob, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
17 Education & Technology Group	0	1	1	0	2.50
Japan Tob	1	1	1	0	2.00

Japan Tob has a consensus price target of $17.00, suggesting a potential downside of 29.34%. Given Japan Tob’s higher probable upside, analysts clearly believe Japan Tob is more favorable than 17 Education & Technology Group.

Summary

Japan Tob beats 17 Education & Technology Group on 9 of the 13 factors compared between the two stocks.

About 17 Education & Technology Group

17 Education & Technology Group, Inc. engages in the provision of educational technology solutions. Its in-school plus after-school integrated model delivers data-driven teaching, learning and assessment products to teachers, students and parents. The firm offers online K-12 large-class after-school tutoring services that complement students’ in-school learning. The company was founded by Jia Wei Gan and Bing Yuan on October 30, 2012 and is headquartered Beijing, China.

About Japan Tob

Japan Tobacco Inc., a tobacco company, manufactures and sells tobacco products, pharmaceuticals, and processed foods in Japan and internationally. The company operates through three segments: Tobacco Business, Pharmaceutical, and Processed Food. It offers tobacco products, such as cigarettes, heat-not-burn tobacco products, E-vapor products, fine cut tobacco products, cigars, pipes, smokeless tobacco products, and hookah and kretek products. The company also provides reduced-risk products, including infused tobacco capsules and heated tobacco sticks. In addition, it researches and develops, manufactures, and sells prescription drugs for the therapeutic areas, such as cardiovascular, kidney and metabolism, immunity/inflammation, and central nervous system. Further, the company provides frozen and room-temperature products, such as frozen udon noodles, packed rice, and frozen okonomiyaki; bakery products; and seasonings, including yeast extracts, assembled, kelp and bonito extracts, and oyster sauces. It offers its products under the Winston, Camel, MEVIUS, and LD brands. Japan Tobacco Inc. was incorporated in 1985 and is headquartered in Tokyo, Japan.