Bright Scholar Education Holdngs (NYSE: ATGE) and Adtalem Global Education (NYSE:ATGE) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Bright Scholar Education Holdngs and Adtalem Global Education, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bright Scholar Education Holdngs 0 0 3 0 3.00
Adtalem Global Education 0 1 4 0 2.80

Bright Scholar Education Holdngs currently has a consensus price target of $17.00, suggesting a potential upside of 49.12%. Adtalem Global Education has a consensus price target of $55.60, suggesting a potential upside of 20.87%. Given Bright Scholar Education Holdngs’ stronger consensus rating and higher possible upside, research analysts plainly believe Bright Scholar Education Holdngs is more favorable than Adtalem Global Education.

Volatility & Risk

Bright Scholar Education Holdngs has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Adtalem Global Education has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Valuation and Earnings

This table compares Bright Scholar Education Holdngs and Adtalem Global Education’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bright Scholar Education Holdngs $201.61 million 7.20 $31.81 million $0.25 45.60
Adtalem Global Education $1.23 billion 2.24 $33.76 million $2.78 16.55

Adtalem Global Education has higher revenue and earnings than Bright Scholar Education Holdngs. Adtalem Global Education is trading at a lower price-to-earnings ratio than Bright Scholar Education Holdngs, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

13.2% of Bright Scholar Education Holdngs shares are owned by institutional investors. Comparatively, 94.1% of Adtalem Global Education shares are owned by institutional investors. 3.0% of Adtalem Global Education shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Bright Scholar Education Holdngs and Adtalem Global Education’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bright Scholar Education Holdngs N/A N/A N/A
Adtalem Global Education 2.38% 10.49% 7.11%

Summary

Adtalem Global Education beats Bright Scholar Education Holdngs on 9 of the 14 factors compared between the two stocks.

Bright Scholar Education Holdngs Company Profile

Bright Scholar Education Holdings Limited operates K-12 schools in China. Its schools comprise international schools, bilingual schools, and kindergartens. The company also offers a range of complementary education services, including international camps and after-school programs. As of January 23, 2018, it had a network of 60 schools with approximately 33,916 students. The company was founded in 1994 and is based in Foshan, China.

Adtalem Global Education Company Profile

Adtalem Global Education Inc. provides educational services worldwide. It operates through three segments: Medical and Healthcare, Professional Education, and Technology and Business. The Medical and Healthcare segment operates Chamberlain University, which provides a pre-licensure bachelor's degree in nursing at 21 campus locations and post-licensure bachelor's, master's, and doctorate degree programs in nursing through its online platform; and operates medical and veterinary schools, including American University of the Caribbean School of Medicine, Ross University School of Medicine, and Ross University School of Veterinary Medicine. The Professional Education segment operates an Association of Certified Anti-Money Laundering Specialists, which provides membership services, certified anti-money laundering specialist certification, conferences, risk assessment, training, and publications; and Becker Professional Education that prepares candidates for the Certified Public Accountant, Certified Management Accountant, and U.S. Medical Licensing Examination certification examinations, as well as professional education programs and seminars in accounting and finance. This segment also offers professional education in the areas of finance, accounting, analytics, marketing, and healthcare. The Technology and Business segment operates approximately 15 institutions, which offers undergraduate and graduate programs in the areas of business, management, medical, healthcare, law, and engineering; and provides legal bar exam review courses. The company was formerly known as DeVry Education Group Inc. and changed its name to Adtalem Global Education Inc. in May 2017. Adtalem Global Education Inc. was founded in 1931 and is based in Chicago, Illinois.

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