CAE (NYSE: CAE) and China Online Education Group (NYSE:COE) are both aerospace companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Dividends

CAE pays an annual dividend of $0.29 per share and has a dividend yield of 1.7%. China Online Education Group does not pay a dividend. CAE pays out 38.7% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares CAE and China Online Education Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
CAE $2.06 billion 2.29 $191.59 million $0.75 23.43
China Online Education Group $60.24 million 4.27 -$74.14 million ($4.13) -3.10

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for CAE and China Online Education Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CAE 0 2 2 0 2.50
China Online Education Group 0 0 0 0 N/A

CAE currently has a consensus target price of $22.00, indicating a potential upside of 25.21%. Given CAE’s higher possible upside, analysts clearly believe CAE is more favorable than China Online Education Group.

Institutional & Insider Ownership

53.0% of CAE shares are held by institutional investors. Comparatively, 25.3% of China Online Education Group shares are held by institutional investors. 18.3% of CAE shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

CAE has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, China Online Education Group has a beta of -0.7, meaning that its stock price is 170% less volatile than the S&P 500.

Profitability

This table compares CAE and China Online Education Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CAE 9.55% 13.35% 5.26%
China Online Education Group -92.66% N/A -71.07%

Summary

CAE beats China Online Education Group on 12 of the 14 factors compared between the two stocks.

CAE Company Profile

CAE Inc. provides training for the civil aviation, defense and security, and healthcare markets. The Company designs and integrates training solutions. It operates through three segments: Civil Aviation Training Solutions, Defense and Security, and Healthcare. The Company provides training solutions for flight, cabin, maintenance and ground personnel in commercial, business and helicopter aviation, a range of flight simulation training devices, as well as ab initio pilot training and crew sourcing services. The Company is a training systems integrator for defense forces across the air, land and sea domains, and for government and civil security organizations responsible for public safety. The Company designs, manufactures and markets simulators, simulation center management solutions and courseware for training of medical and allied healthcare students and clinicians in educational institutions, hospitals and defense organizations across the world.

China Online Education Group Company Profile

China Online Education Group is engaged in providing online English language education services to students in the People’s Republic of China (the PRC). The Company operates an online education platform that provides online tutoring programs to students through the Internet. Its platform analyzes teachers’ teaching aptitudes, feedback and rating from students, as well as background, and recommends suitable teachers to students according to their respective characteristics and learning objectives. The Company develops and tailors its curriculum to its interactive lesson format. The Company offers various courses, which include Classic English and Classic English Junior that are focused on the development of English communication skills. The Company also offers various specialty courses that are focused at situation-based English education and test preparation needs, such as Business English and International English Language Testing System (IELTS) Speaking.

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