KinderCare Learning Companies (NYSE:KLC) & New Oriental Education & Technology Group (NYSE:EDU) Critical Contrast

New Oriental Education & Technology Group (NYSE:EDU) and KinderCare Learning Companies (NYSE:KLC) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Earnings and Valuation

This table compares New Oriental Education & Technology Group and KinderCare Learning Companies”s gross revenue, earnings per share 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	18.86
KinderCare Learning Companies	$2.74 billion	0.10	-$112.88 million	($3.98)	-0.60

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.

Risk and Volatility

New Oriental Education & Technology Group has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500. Comparatively, KinderCare Learning Companies has a beta of 3.78, suggesting that its stock price is 278% more volatile than the S&P 500.

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 Ratings

This is a summary of recent ratings for New Oriental Education & Technology Group and KinderCare Learning Companies, as provided by MarketBeat.

	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 currently has a consensus price target of $61.92, indicating a potential upside of 10.93%. KinderCare Learning Companies has a consensus price target of $4.13, indicating a potential upside of 73.11%. Given KinderCare Learning Companies’ higher possible upside, analysts clearly 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

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.