Creative Learning (OTCMKTS:CLCN) and RISE Education Cayman (NASDAQ:REDU) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.

Insider & Institutional Ownership

15.3% of RISE Education Cayman shares are owned by institutional investors. 35.1% of Creative Learning shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Creative Learning has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, RISE Education Cayman has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Earnings and Valuation

This table compares Creative Learning and RISE Education Cayman’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Creative Learning $2.46 million 0.49 -$1.03 million N/A N/A
RISE Education Cayman $184.99 million 2.93 $20.79 million $0.40 24.63

RISE Education Cayman has higher revenue and earnings than Creative Learning.

Analyst Recommendations

This is a breakdown of current ratings for Creative Learning and RISE Education Cayman, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Creative Learning 0 0 0 0 N/A
RISE Education Cayman 0 2 1 0 2.33

RISE Education Cayman has a consensus target price of $9.78, indicating a potential downside of 0.71%. Given RISE Education Cayman’s higher possible upside, analysts plainly believe RISE Education Cayman is more favorable than Creative Learning.

Profitability

This table compares Creative Learning and RISE Education Cayman’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Creative Learning 1.12% 4.14% 2.53%
RISE Education Cayman 11.31% 37.63% 6.70%

Summary

RISE Education Cayman beats Creative Learning on 9 of the 11 factors compared between the two stocks.

About Creative Learning

Creative Learning Corporation provides educational and enrichment programs under the Bricks 4 Kidz and Sew Fun Studios trade names in the United States and internationally. The company's programs are offered to children ages 3 to 13+, which include in-school workshops, and after-school and pre-school classes, as well as classes for home-schooled children; and camps, birthday parties, and special events that are designed to enhance and enrich the traditional school curriculum, trigger young children's lively imaginations, and build self-confidence. As of September 30, 2017, it had 531 Bricks 4 Kidz and Sew Fun Studios franchises, 30 Bricks 4 Kidz master franchises, and 91 Bricks 4 Kidz sub-franchises operating in 44 countries. Creative Learning Corporation was founded in 2009 and is based in St. Augustine, Florida.

About RISE Education Cayman

RISE Education Cayman Ltd, through its subsidiaries, provides junior English language training services under the RISE brand name in the People's Republic of China. The company offers a range of educational programs, services, and products, including educational courses, sale of course materials, franchise services, and study tours. It also provides educational consulting services. As of December 31, 2017, the company had a network of 270 learning centers comprising 64 self-owned centers and 206 franchised learning centers across 85 cities in the People's Republic of China. RISE Education Cayman Ltd was founded in 2007 and is headquartered in Beijing, the People's Republic of China.

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