TAL Education Group (NYSE: TAL) and Capella Education (NASDAQ:CPLA) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.
Valuation & Earnings
This table compares TAL Education Group and Capella Education’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|TAL Education Group||$1.04 billion||13.24||$116.88 million||$0.24||117.71|
|Capella Education||$429.39 million||2.21||$42.96 million||$3.54||23.05|
TAL Education Group has higher revenue and earnings than Capella Education. Capella Education is trading at a lower price-to-earnings ratio than TAL Education Group, indicating that it is currently the more affordable of the two stocks.
This table compares TAL Education Group and Capella Education’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TAL Education Group||9.90%||18.17%||6.62%|
Volatility and Risk
TAL Education Group has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500. Comparatively, Capella Education has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.
Capella Education pays an annual dividend of $1.64 per share and has a dividend yield of 2.0%. TAL Education Group does not pay a dividend. Capella Education pays out 46.3% of its earnings in the form of a dividend.
This is a summary of current ratings and recommmendations for TAL Education Group and Capella Education, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TAL Education Group||0||3||5||0||2.63|
TAL Education Group currently has a consensus price target of $30.18, indicating a potential upside of 6.84%. Capella Education has a consensus price target of $96.50, indicating a potential upside of 18.26%. Given Capella Education’s higher possible upside, analysts plainly believe Capella Education is more favorable than TAL Education Group.
Institutional and Insider Ownership
30.0% of TAL Education Group shares are owned by institutional investors. Comparatively, 91.8% of Capella Education shares are owned by institutional investors. 3.6% of Capella Education shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
TAL Education Group Company Profile
TAL Education Group is a holding company for a group of companies engaged in provision of after-school tutoring programs for primary and secondary school students in the People’s Republic of China (the PRC). The Company is a K-12 after-school tutoring services provider in China. The Company’s Xueersi Peiyou small classes course consists of approximately four semesters, which include approximately two school semesters in Spring and Fall, and approximately two holiday semesters in summer and winter. It operates a Website, www.jzb.com, which is an online education platform in China. It offers personalized premium services under its Zhikang brand. It offers online courses through www.xueersi.com. Through www.xueersi.com, the Company offers online courses on mathematics, English, Chinese, physics, chemistry, biology and other subjects. It also offers select online courses through other Websites. The Company has over 10 call centers in Beijing, Shanghai, Tianjin, Guangzhou and Shenzhen.
Capella Education Company Profile
Capella Education Company is an education services company. The Company provides direct path between learning and employment through its online postsecondary education offerings and through programs to develop job-ready skills for demand markets. The company’s segments include post-secondary segment and job-ready skills segment. The post-secondary segment has Capella University (the University) and Sophia Learning, LLC (Sophia). The job-ready skills segment has Capella Learning Solutions, LLC (CLS), Hackbright Academy, Inc. (Hackbright) and DevMountain, LLC (DevMountain). The Company’s program offers six markets, which include public service leadership; nursing and health sciences; social and behavioral sciences; business and technology; education and undergraduate studies. Capella University offers over 1,940 online courses and approximately 50 academic programs with approximately 150 specializations to approximately 38,000 learners.
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