Xueda Education Group (NYSE: XUE) and Strayer Education (NASDAQ:STRA) are both non-cyclical consumer goods & services companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.

Dividends

Strayer Education pays an annual dividend of $1.00 per share and has a dividend yield of 1.1%. Xueda Education Group does not pay a dividend. Strayer Education pays out 31.2% of its earnings in the form of a dividend.

Profitability

This table compares Xueda Education Group and Strayer Education’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xueda Education Group -4.53% -15.97% -4.86%
Strayer Education 7.90% 17.65% 11.15%

Institutional & Insider Ownership

93.0% of Strayer Education shares are held by institutional investors. 6.7% of Strayer Education shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Xueda Education Group and Strayer Education’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Xueda Education Group N/A N/A N/A N/A N/A
Strayer Education $449.07 million 2.11 $77.90 million $3.21 27.64

Strayer Education has higher revenue and earnings than Xueda Education Group.

Analyst Ratings

This is a summary of recent ratings and price targets for Xueda Education Group and Strayer Education, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xueda Education Group 0 0 0 0 N/A
Strayer Education 0 2 1 0 2.33

Strayer Education has a consensus target price of $94.00, suggesting a potential upside of 5.93%. Given Strayer Education’s higher possible upside, analysts clearly believe Strayer Education is more favorable than Xueda Education Group.

Summary

Strayer Education beats Xueda Education Group on 9 of the 10 factors compared between the two stocks.

About Xueda Education Group

Xueda Education Group is a holding company. The Company, through its subsidiaries and consolidated variable interest entity (VIE), is engaged in providing private personalized tutoring services for primary and secondary school students in the People’s Republic of China (PRC). The Company has developed and implemented a results-oriented, student-centric service delivery model. The Company’s personalized service model consists of six components: assessment, consultation, formulation of a customized study plan, personalized tutoring, delivery of student-oriented supporting services and results. The Company’s learning centers are directly operated by it under its Xueda brand. The Company delivers its services to students through a national network, consisting of approximately 467 learning centers, all of which are operated by it, in 85 cities in China.

About Strayer Education

Strayer Education, Inc. is an education services holding company. The Company provides post-secondary education and other academic programs, through its subsidiaries, Strayer University (the University) and New York Code and Design Academy (NYCDA). As of December 31, 2016, the University offered undergraduate and graduate degree programs in business administration, accounting, information technology, education, health services administration, nursing, public administration and criminal justice at 74 physical campuses located in the Mid-Atlantic and Southern regions of the United States, and online. The University also offers an executive Master of Business Administration (MBA) online through its Jack Welch Management Institute. Its subsidiary, NYCDA, provides non-degree courses in Web and application software development, primarily at its campus in New York City. Each undergraduate degree program includes courses in oral and written communication skills, as well as mathematics.

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