Critical Contrast: TCTM Kids IT Education (VSA) versus Its Rivals

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

Profitability

This table compares TCTM Kids IT Education and its rivals’ 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%

Institutional and 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 insiders. Comparatively, 16.4% of shares of all “Staffing” companies 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.

Valuation & Earnings

This table compares TCTM Kids IT Education and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TCTM Kids IT Education	$660.42 million	-$80.36 million	-3.66
TCTM Kids IT Education Competitors	$4.43 billion	$25.85 million	-1.71

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

Volatility and Risk

TCTM Kids IT Education has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, TCTM Kids IT Education’s rivals have a beta of 0.84, suggesting that their average stock price is 16% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for TCTM Kids IT Education and its rivals, 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	144	634	763	51	2.45

As a group, “Staffing” companies have a potential upside of 34.56%. Given TCTM Kids IT Education’s rivals stronger consensus rating and higher possible upside, analysts clearly believe TCTM Kids IT Education has less favorable growth aspects than its rivals.

Summary

TCTM Kids IT Education rivals beat TCTM Kids IT Education on 9 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.