New Oriental Education & Technology Group (NYSE:EDU) and Under Armour (NYSE:UA) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.
Profitability
This table compares New Oriental Education & Technology Group and Under Armour's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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New Oriental Education & Technology Group | 10.85% | 12.98% | 5.61% |
Under Armour | -16.60% | -7.96% | -2.69% |
Valuation & Earnings
This table compares New Oriental Education & Technology Group and Under Armour's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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New Oriental Education & Technology Group | $3.58 billion | 7.43 | $413.33 million | $2.59 | 5.99 |
Under Armour | $5.27 billion | 1.52 | $92.14 million | N/A | N/A |
New Oriental Education & Technology Group has higher earnings, but lower revenue than Under Armour.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for New Oriental Education & Technology Group and Under Armour, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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New Oriental Education & Technology Group | 0 | 0 | 6 | 1 | 3.14 |
Under Armour | 0 | 4 | 1 | 0 | 2.20 |
New Oriental Education & Technology Group presently has a consensus price target of $158.5286, indicating a potential upside of 928.07%. Under Armour has a consensus price target of $12.6667, indicating a potential downside of 27.78%. Given New Oriental Education & Technology Group's stronger consensus rating and higher probable upside, equities research analysts plainly believe New Oriental Education & Technology Group is more favorable than Under Armour.
Risk & Volatility
New Oriental Education & Technology Group has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Under Armour has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.
Institutional and Insider Ownership
80.7% of New Oriental Education & Technology Group shares are held by institutional investors. Comparatively, 35.2% of Under Armour shares are held by institutional investors. 15.5% of New Oriental Education & Technology Group shares are held by insiders. Comparatively, 15.8% of Under Armour shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
New Oriental Education & Technology Group beats Under Armour on 11 of the 14 factors compared between the two stocks.