Skechers U.S.A. (NYSE:SKX) and New Oriental Education & Technology Group (NYSE:EDU) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.
Risk & Volatility
Skechers U.S.A. has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, New Oriental Education & Technology Group has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.
Profitability
This table compares Skechers U.S.A. and New Oriental Education & Technology Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Skechers U.S.A. | 2.28% | 5.25% | 2.50% |
New Oriental Education & Technology Group | 10.85% | 12.98% | 5.61% |
Earnings and Valuation
This table compares Skechers U.S.A. and New Oriental Education & Technology Group's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Skechers U.S.A. | $5.22 billion | 1.35 | $346.56 million | $2.25 | 19.92 |
New Oriental Education & Technology Group | $3.58 billion | 7.19 | $413.33 million | $2.59 | 5.80 |
New Oriental Education & Technology Group has lower revenue, but higher earnings than Skechers U.S.A.. New Oriental Education & Technology Group is trading at a lower price-to-earnings ratio than Skechers U.S.A., indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
77.4% of Skechers U.S.A. shares are held by institutional investors. Comparatively, 80.7% of New Oriental Education & Technology Group shares are held by institutional investors. 28.1% of Skechers U.S.A. shares are held by insiders. Comparatively, 15.5% of New Oriental Education & Technology Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Skechers U.S.A. and New Oriental Education & Technology Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Skechers U.S.A. | 0 | 2 | 7 | 0 | 2.78 |
New Oriental Education & Technology Group | 0 | 0 | 6 | 1 | 3.14 |
Skechers U.S.A. presently has a consensus price target of $41.2857, suggesting a potential downside of 7.89%. New Oriental Education & Technology Group has a consensus price target of $177.2857, suggesting a potential upside of 1,081.12%. Given New Oriental Education & Technology Group's stronger consensus rating and higher probable upside, analysts plainly believe New Oriental Education & Technology Group is more favorable than Skechers U.S.A..
Summary
New Oriental Education & Technology Group beats Skechers U.S.A. on 10 of the 15 factors compared between the two stocks.