TCTM Kids IT Education (VSA) vs. The Competition Critical Review

TCTM Kids IT Education (NASDAQ:VSA) is one of 19 publicly-traded companies in the “Staffing” industry, but how does it contrast to its peers? We will compare TCTM Kids IT Education to similar companies based on the strength of its dividends, analyst recommendations, risk, profitability, institutional ownership, earnings and valuation.

Analyst Ratings

This is a breakdown of recent ratings for TCTM Kids IT Education and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TCTM Kids IT Education	1	0	0	0	1.00
TCTM Kids IT Education Competitors	141	633	761	51	2.46

As a group, “Staffing” companies have a potential upside of 32.22%. Given TCTM Kids IT Education’s peers stronger consensus rating and higher probable upside, analysts clearly believe TCTM Kids IT Education has less favorable growth aspects than its peers.

Volatility & Risk

TCTM Kids IT Education has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, TCTM Kids IT Education’s peers have a beta of 0.83, indicating that their average share price is 17% less volatile than the S&P 500.

Valuation and Earnings

This table compares TCTM Kids IT Education and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TCTM Kids IT Education	$660.42 million	-$80.36 million	-4.32
TCTM Kids IT Education Competitors	$4.42 billion	$25.85 million	-4.43

TCTM Kids IT Education’s peers have higher revenue and earnings than TCTM Kids IT Education. TCTM Kids IT Education is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

49.8% of TCTM Kids IT Education shares are held by institutional investors. Comparatively, 64.8% of shares of all “Staffing” companies are held by institutional investors. 32.9% of TCTM Kids IT Education shares are held by company insiders. Comparatively, 19.1% of shares of all “Staffing” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares TCTM Kids IT Education and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TCTM Kids IT Education	N/A	N/A	N/A
TCTM Kids IT Education Competitors	-13.67%	-14.49%	-9.10%

Summary

TCTM Kids IT Education peers beat TCTM Kids IT Education on 8 of the 13 factors compared.

About TCTM Kids IT Education

Tarena International, Inc., through its subsidiaries, provides professional education services through full-time and part-time classes under the Tarena brand in the People’s Republic of China. It operates through two segments, Adult Professional Education and Childhood & Adolescent Quality Education Services. The company offers education courses in 7 information technology (IT) subjects, such as Java, software testing, Linux and network engineering, Big Data, Web front-end development, Python, and network engineer courses; and 3 non-IT subjects, including digital art, online sales and marketing, and visual effects-VFX, as well as live distance instruction, classroom-based tutoring, and online learning modules. It also provides 9 childhood and adolescent quality education programs, including robotics programming, graphical intelligent programming, NOI informatics Olympiad, Python artificial intelligence, high level hardware programming for secondary school, soft and hard programming enlightenment, creative programming starter, and SPIKE starter and advanced under the TongchengTongmei brand. In addition, the company offers online learning platform for education courses and job placement training courses. As of December 31, 2021, it had a network of 100 directly managed learning centers in 44 cities; and 238 TongchengTongmei standalone learning centers in 54 cities. The company was founded in 2002 and is headquartered in Beijing, the People’s Republic of China.