Frontdoor (NASDAQ:FTDR) & New Oriental Education & Technology Group (NYSE:EDU) Head to Head Contrast

Frontdoor (NASDAQ:FTDR) and New Oriental Education & Technology Group (NYSE:EDU) are both mid-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Analyst Ratings

This is a breakdown of recent recommendations for Frontdoor and New Oriental Education & Technology Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Frontdoor	0	3	4	0	2.57
New Oriental Education & Technology Group	0	2	3	1	2.83

Frontdoor currently has a consensus price target of $92.60, suggesting a potential upside of 16.04%. New Oriental Education & Technology Group has a consensus price target of $63.17, suggesting a potential upside of 7.91%. Given Frontdoor’s higher possible upside, equities research analysts plainly believe Frontdoor is more favorable than New Oriental Education & Technology Group.

Profitability

This table compares Frontdoor and New Oriental Education & Technology Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Frontdoor	12.72%	120.90%	14.86%
New Oriental Education & Technology Group	8.39%	11.32%	5.84%

Earnings and Valuation

This table compares Frontdoor and New Oriental Education & Technology Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Frontdoor	$2.09 billion	2.63	$255.00 million	$3.77	21.17
New Oriental Education & Technology Group	$5.66 billion	1.60	$475.17 million	$2.96	19.78

New Oriental Education & Technology Group has higher revenue and earnings than Frontdoor. New Oriental Education & Technology Group is trading at a lower price-to-earnings ratio than Frontdoor, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Frontdoor has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, New Oriental Education & Technology Group has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.

Summary

Frontdoor beats New Oriental Education & Technology Group on 9 of the 13 factors compared between the two stocks.

About Frontdoor

Frontdoor, Inc. provides home warranties in the United States in the United States. Its customizable home warranties help customers protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances. The company’s home warranty customers subscribe to an annual service plan agreement that covers the repair or replacement of principal components of approximately 20 home systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as electronics, pools, and spas and pumps; and heating, ventilation, and air conditioning systems. It also offers on-demand home services and a one-stop app experience for home repair and maintenance; and Streem technology, an app that empowers homeowners by connecting them in real time through video chat with qualified experts to diagnose and solve their problems. The company serves homeowners under the Frontdoor, American Home Shield, HSA, OneGuard, Landmark Home Warranty, Frontdoor logo, and Streem brands. The company was founded in 1971 and is headquartered in Memphis, Tennessee.

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.