Reviewing 17 Education & Technology Group (NYSE:YQ) and RISE Education Cayman (NASDAQ:REDU)

RISE Education Cayman (NASDAQ:REDU) and 17 Education & Technology Group (NYSE:YQ) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Profitability

This table compares RISE Education Cayman and 17 Education & Technology Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RISE Education Cayman -4.59% 4.77% 0.91%
17 Education & Technology Group N/A N/A N/A

Institutional & Insider Ownership

7.7% of RISE Education Cayman shares are held by institutional investors. Comparatively, 9.6% of 17 Education & Technology Group shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for RISE Education Cayman and 17 Education & Technology Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RISE Education Cayman 0 1 0 0 2.00
17 Education & Technology Group 2 1 0 0 1.33

RISE Education Cayman presently has a consensus target price of $2.90, suggesting a potential upside of 333.48%. 17 Education & Technology Group has a consensus target price of $4.15, suggesting a potential upside of 330.50%. Given RISE Education Cayman’s stronger consensus rating and higher possible upside, analysts clearly believe RISE Education Cayman is more favorable than 17 Education & Technology Group.

Valuation and Earnings

This table compares RISE Education Cayman and 17 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
RISE Education Cayman $146.89 million 0.26 -$20.30 million ($0.16) -4.18
17 Education & Technology Group $198.37 million 0.93 -$205.35 million ($17.12) -0.06

RISE Education Cayman has higher earnings, but lower revenue than 17 Education & Technology Group. RISE Education Cayman is trading at a lower price-to-earnings ratio than 17 Education & Technology Group, indicating that it is currently the more affordable of the two stocks.

Summary

RISE Education Cayman beats 17 Education & Technology Group on 6 of the 11 factors compared between the two stocks.

RISE Education Cayman Company Profile

RISE Education Cayman Ltd. engages in the provision of after-school English teaching and tutoring services. It offers various subject matters, such as language arts, math, natural science, and social science. The company was founded in October 2007 and is headquartered in Dongcheng, China.

17 Education & Technology Group Company Profile

17 Education & Technology Group Inc., an education technology company, provides K-12 online education service in the People's Republic of China. It also offers online K-12 large-class after-school tutoring services on development of course syllabi and content and adaptation for live classes areas. The company was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.

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