New Oriental Education & Technology Group (NYSE:EDU – Get Free Report) and Udemy (NASDAQ:UDMY – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.
Volatility & Risk
New Oriental Education & Technology Group has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Udemy has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for New Oriental Education & Technology Group and Udemy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Oriental Education & Technology Group | 0 | 0 | 4 | 0 | 3.00 |
| Udemy | 1 | 4 | 7 | 0 | 2.50 |
Profitability
This table compares New Oriental Education & Technology Group and Udemy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Oriental Education & Technology Group | 8.38% | 9.43% | 5.27% |
| Udemy | -12.33% | -29.36% | -11.85% |
Insider & Institutional Ownership
79.5% of Udemy shares are held by institutional investors. 15.5% of New Oriental Education & Technology Group shares are held by insiders. Comparatively, 3.2% of Udemy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares New Oriental Education & Technology Group and Udemy”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Oriental Education & Technology Group | $4.31 billion | 2.26 | $309.59 million | $2.34 | 24.52 |
| Udemy | $728.94 million | 1.54 | -$107.29 million | ($0.63) | -12.19 |
New Oriental Education & Technology Group has higher revenue and earnings than Udemy. Udemy is trading at a lower price-to-earnings ratio than New Oriental Education & Technology Group, indicating that it is currently the more affordable of the two stocks.
Summary
New Oriental Education & Technology Group beats Udemy on 11 of the 14 factors compared between the two stocks.
About New Oriental Education & Technology Group
New Oriental Education & Technology Group Inc. provides private educational services under the New Oriental brand in the People’s Republic of China. The company operates through four segments: Educational Services and Test Preparation Courses; Online Education and Other Services; Overseas Study Consulting Services; and Educational Materials and Distribution. It offers test preparation courses to students taking language and entrance exams used by educational institutions in the United States, the Commonwealth countries, and the People’s Republic of China. The company also provides non-academic tutoring courses; intelligent learning systems and devices to offer a digital learning experience for students; and overseas studies consulting services. In addition, it offers online education services through the Koolearn.com platform that provides comprehensive online education courses, including college educational services, such as college test preparation, overseas test preparation, and English language learning for college students and working professionals preparing for standardized tests or seeking to enhance their English language proficiency; and educational content packages to schools and institutional customers, including universities, public libraries, telecom operators, and online video streaming providers. Further, the company develops and edits educational materials for language training and test preparation. In addition, it offers educational programs, services, and products to students through schools; learning centers; and bookstores, as well as through its online learning platforms. The company was founded in 1993 and is headquartered in Beijing, the People’s Republic of China.
About Udemy
Udemy, Inc., a learning company, that operates a marketplace platform for learning skills in the United States and internationally. The company offers skill acquisition, development, and validation courses for organizations and individuals, through direct-to-consumer or Udemy Business offerings in various languages. Its courses provide learning objectives, such as reskilling or upskilling in technology, business, soft skills, and personal development, as well as learners receive access to interactive learning tools comprising quizzes, exercises, and instructor questions-and-answers. The company was incorporated in 2010 and is headquartered in San Francisco, California.
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