TAL Education Group (NYSE:TAL) and Deckers Outdoor (NYSE:DECK) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.
Valuation & Earnings
This table compares TAL Education Group and Deckers Outdoor's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
TAL Education Group | $3.27 billion | 10.85 | $-110,190,000.00 | ($0.19) | -329.68 |
Deckers Outdoor | $2.13 billion | 4.33 | $276.14 million | $9.62 | 34.08 |
Deckers Outdoor has lower revenue, but higher earnings than TAL Education Group. TAL Education Group is trading at a lower price-to-earnings ratio than Deckers Outdoor, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares TAL Education Group and Deckers Outdoor's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
TAL Education Group | 0.93% | 1.32% | 0.56% |
Deckers Outdoor | 14.02% | 26.81% | 16.49% |
Risk & Volatility
TAL Education Group has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500. Comparatively, Deckers Outdoor has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for TAL Education Group and Deckers Outdoor, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
TAL Education Group | 0 | 5 | 8 | 0 | 2.62 |
Deckers Outdoor | 0 | 1 | 14 | 0 | 2.93 |
TAL Education Group currently has a consensus target price of $82.80, suggesting a potential upside of 32.18%. Deckers Outdoor has a consensus target price of $334.00, suggesting a potential upside of 1.88%. Given TAL Education Group's higher possible upside, equities analysts plainly believe TAL Education Group is more favorable than Deckers Outdoor.
Institutional and Insider Ownership
95.9% of Deckers Outdoor shares are owned by institutional investors. 1.8% of TAL Education Group shares are owned by insiders. Comparatively, 1.3% of Deckers Outdoor shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Deckers Outdoor beats TAL Education Group on 9 of the 14 factors compared between the two stocks.