Analyzing China Education Resources (OTCMKTS:CHNUF) & Graham (NYSE:GHC)

Graham (NYSE:GHC) and China Education Resources (OTCMKTS:CHNUF) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Institutional & Insider Ownership

93.2% of Graham shares are owned by institutional investors. Comparatively, 11.6% of China Education Resources shares are owned by institutional investors. 18.6% of Graham shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Graham and China Education Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Graham	0	0	1	1	3.50
China Education Resources	0	0	0	0	0.00

Given China Education Resources’ higher possible upside, analysts clearly believe China Education Resources is more favorable than Graham.

Profitability

This table compares Graham and China Education Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Graham	10.69%	5.73%	3.32%
China Education Resources	N/A	N/A	N/A

Earnings and Valuation

This table compares Graham and China Education Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Graham	$4.91 billion	1.01	$292.29 million	$124.08	9.48
China Education Resources	N/A	N/A	N/A	($0.07)	N/A

Graham has higher revenue and earnings than China Education Resources. China Education Resources is trading at a lower price-to-earnings ratio than Graham, indicating that it is currently the more affordable of the two stocks.

Summary

Graham beats China Education Resources on 11 of the 12 factors compared between the two stocks.

About Graham

Graham Holdings Company, through its subsidiaries, operates as a diversified education and media company in the United States and internationally. It provides test preparation services and materials; professional training and exam preparation for professional certifications and licensures; and non-academic operations support services to the Purdue University Global; operations support services for online courses and programs; training and test preparation services for accounting and financial services professionals; English-language training, academic preparation programs, and test preparation for English proficiency exams; and A-level examination preparation services, as well as operates colleges, business school, higher education institution, and an online learning institution. The company also owns and operates television stations, restaurants, and entertainment venues; engages in the financial training and automobile dealerships business; offers social media management tools to connect newsrooms with their users; produces Foreign Policy magazine and ForeignPolicy.com website; and publishes Slate, an online magazine, as well as French-language news magazine websites at slate.fr and slateafrique.com. In addition, it provides social media marketing solutions; home health, hospice, and palliative services; burners, igniters, dampers, and controls; screw jacks, linear actuators, and related linear motion products, and lifting systems; pressure impregnated kiln-dried lumber and plywood products; digital advertising services; power charging and data systems, industrial and commercial indoor lighting solutions, and electrical components and assemblies; dermatology and professional aesthetics, and skin care services; software and services; and operates pharmacy. The company was formerly known as The Washington Post Company and changed its name to Graham Holdings Company in November 2013. Graham Holdings Company was founded in 1877 and is based in Arlington, Virginia.

About China Education Resources

China Education Resources Inc., an ed-tech company, provides education resources and services for teachers, students, parents, education professionals, and school administrators in the People’s Republic of China and China. The company provides systems and contents for online/offline learning, training courses, and social media. It operates an education services portal, cersp.com that provides education resources and services to China’s kindergarten to grade 12 education market. The company’s portal offers school platform that provides a link between a school with its teachers, students, and parents; online tutoring program, a platform developed for a teacher to provide online tutoring services through the internet to students; and digital education products containing digital textbook tutorial materials and digital supplementary materials, such as lesson plans, course modules, and tests. It also develops and distributes educational textbooks and materials to bookstores and schools. The company was founded in 1997 and is headquartered in Vancouver, Canada.