New Oriental Education & Technology Group (NYSE:EDU – Get Free Report) and Coursera (NYSE:COUR – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Earnings & Valuation
This table compares New Oriental Education & Technology Group and Coursera”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Oriental Education & Technology Group | $5.66 billion | 1.66 | $475.17 million | $2.96 | 20.03 |
| Coursera | $757.50 million | 2.02 | -$51.00 million | ($0.67) | -8.63 |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for New Oriental Education & Technology Group and Coursera, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Oriental Education & Technology Group | 0 | 2 | 5 | 1 | 2.88 |
| Coursera | 1 | 4 | 7 | 0 | 2.50 |
New Oriental Education & Technology Group presently has a consensus price target of $64.54, suggesting a potential upside of 8.84%. Coursera has a consensus price target of $8.55, suggesting a potential upside of 47.85%. Given Coursera’s higher probable upside, analysts clearly believe Coursera is more favorable than New Oriental Education & Technology Group.
Institutional & Insider Ownership
89.5% of Coursera shares are owned by institutional investors. 15.5% of New Oriental Education & Technology Group shares are owned by company insiders. Comparatively, 16.3% of Coursera shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk & Volatility
New Oriental Education & Technology Group has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500. Comparatively, Coursera has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.
Profitability
This table compares New Oriental Education & Technology Group and Coursera’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Oriental Education & Technology Group | 8.39% | 11.32% | 5.84% |
| Coursera | -15.39% | -1.72% | -1.07% |
Summary
New Oriental Education & Technology Group beats Coursera on 9 of the 15 factors compared between the two stocks.
About New Oriental Education & Technology Group
New Oriental Education & Technology Group, Inc. is a holding company, which engages in the provision of private educational services. It operates through the following segments: Educational Services and Test Preparation Courses, Private Label Products and Livestreaming E-Commerce, Overseas Study Consulting Services, and Educational Materials and Distribution. The company was founded by Min Hong Yu and Yong Qiang Qian on November 16, 1993, and is headquartered in Beijing, China.
About Coursera
Coursera, Inc. operates an online educational content platform in the United States, Europe, Africa, the Asia Pacific, the Middle East, and internationally. It operates in three segments: Consumer, Enterprise, and Degrees. The company offers guided projects, courses, and specializations, as well as online degrees; and certificates for entry-level professional, non-entry level professional, university, and MasterTrack. It offers its products to individuals, enterprise, business, campus, and government. The company was formerly known as Dkandu, Inc. and changed its name to Coursera, Inc. in April 2012. Coursera, Inc. was incorporated in 2011 and is headquartered in Mountain View, California.
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