QuantaSing Group (NASDAQ:QSG) vs. Graham (NYSE:GHC) Critical Contrast

QuantaSing Group (NASDAQ:QSG) and Graham (NYSE:GHC) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for QuantaSing Group and Graham, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuantaSing Group	0	1	1	0	2.50
Graham	0	0	0	1	4.00

QuantaSing Group currently has a consensus target price of $9.52, suggesting a potential upside of 35.61%. Given QuantaSing Group’s higher probable upside, equities research analysts plainly believe QuantaSing Group is more favorable than Graham.

Institutional and Insider Ownership

93.2% of Graham shares are owned by institutional investors. 20.5% of Graham shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares QuantaSing Group and Graham”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuantaSing Group	$380.48 million	0.94	$50.08 million	$0.90	7.80
Graham	$4.79 billion	0.86	$724.63 million	$155.77	6.10

Graham has higher revenue and earnings than QuantaSing Group. Graham is trading at a lower price-to-earnings ratio than QuantaSing Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares QuantaSing Group and Graham’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QuantaSing Group	13.13%	47.31%	21.93%
Graham	14.10%	6.79%	3.81%

Risk and Volatility

QuantaSing Group has a beta of -0.95, suggesting that its share price is 195% less volatile than the S&P 500. Comparatively, Graham has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Summary

Graham beats QuantaSing Group on 9 of the 15 factors compared between the two stocks.

About QuantaSing Group

QuantaSing Group Limited provides online learning services in the People's Republic of China. The company offers online courses, including financial literacy, short-video production, personal well-being, electronic keyboard, and meditation courses. It also offers marketing and enterprise talent management services to enterprise customers. In addition, the company provides online and literacy course to adult learners under various brands, including QiNiu, JiangZhen, and QianChi. QuantaSing Group Limited was founded in 2019 and is headquartered in Beijing, the People's Republic of China.

About Graham

Graham Holdings Company, through its subsidiaries, operates as a diversified education and media company in the United States and internationally. It provides test preparation services and materials; professional training and exam preparation for professional certifications and licensures; and non-academic operations support services to the Purdue University Global; operations support services for online courses and programs; training and test preparation services for accounting and financial services professionals; English-language training, academic preparation programs, and test preparation for English proficiency exams; and A-level examination preparation services, as well as operates colleges, business school, higher education institution, and an online learning institution. The company also owns and operates television stations, restaurants, and entertainment venues; engages in the financial training and automobile dealerships business; offers social media management tools to connect newsrooms with their users; produces Foreign Policy magazine and ForeignPolicy.com website; and publishes Slate, an online magazine, as well as French-language news magazine websites at slate.fr and slateafrique.com. In addition, it provides social media marketing solutions; home health, hospice, and palliative services; burners, igniters, dampers, and controls; screw jacks, linear actuators, and related linear motion products, and lifting systems; pressure impregnated kiln-dried lumber and plywood products; digital advertising services; power charging and data systems, industrial and commercial indoor lighting solutions, and electrical components and assemblies; dermatology and professional aesthetics, and skin care services; software and services; and operates pharmacy. The company was formerly known as The Washington Post Company and changed its name to Graham Holdings Company in November 2013. Graham Holdings Company was founded in 1877 and is based in Arlington, Virginia.