American Public Education (NASDAQ:APEI) and Tarena International (NASDAQ:TEDU) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.
Profitability
This table compares American Public Education and Tarena International's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| American Public Education | 5.63% | 5.95% | 4.88% |
| Tarena International | N/A | N/A | N/A |
Risk and Volatility
American Public Education has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Tarena International has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.
Institutional & Insider Ownership
91.7% of American Public Education shares are held by institutional investors. Comparatively, 6.2% of Tarena International shares are held by institutional investors. 3.7% of American Public Education shares are held 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.
Earnings & Valuation
This table compares American Public Education and Tarena International's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| American Public Education | $286.27 million | 2.24 | $10.01 million | $1.09 | 31.48 |
| Tarena International | $294.66 million | 0.56 | $-148,820,000.00 | N/A | N/A |
American Public Education has higher earnings, but lower revenue than Tarena International.
Analyst Ratings
This is a summary of current ratings and recommmendations for American Public Education and Tarena International, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| American Public Education | 0 | 1 | 6 | 0 | 2.86 |
| Tarena International | 0 | 0 | 0 | 0 | N/A |
American Public Education presently has a consensus price target of $41.3333, indicating a potential upside of 20.47%. Given American Public Education's higher possible upside, research analysts plainly believe American Public Education is more favorable than Tarena International.
Summary
American Public Education beats Tarena International on 10 of the 11 factors compared between the two stocks.
