China Online Education Group (NYSE:COE) and Learning Tree International (OTCMKTS:LTRE) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.
Valuation and Earnings
This table compares China Online Education Group and Learning Tree International’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| China Online Education Group | $166.61 million | 1.20 | -$60.61 million | N/A | N/A |
| Learning Tree International | $64.32 million | 0.09 | -$2.05 million | N/A | N/A |
Learning Tree International has lower revenue, but higher earnings than China Online Education Group.
Profitability
This table compares China Online Education Group and Learning Tree International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| China Online Education Group | -17.61% | N/A | -21.71% |
| Learning Tree International | N/A | N/A | N/A |
Risk & Volatility
China Online Education Group has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Learning Tree International has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500.
Insider and Institutional Ownership
7.2% of China Online Education Group shares are held by institutional investors. Comparatively, 7.5% of Learning Tree International shares are held by institutional investors. 57.7% of Learning Tree International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and price targets for China Online Education Group and Learning Tree International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China Online Education Group | 0 | 0 | 0 | 0 | N/A |
| Learning Tree International | 0 | 0 | 0 | 0 | N/A |
Summary
Learning Tree International beats China Online Education Group on 5 of the 8 factors compared between the two stocks.
China Online Education Group Company Profile
China Online Education Group, through its subsidiaries, provides online English language education services to students in the People’s Republic of China and the Philippines. It operates online and mobile education platforms that enable students to take live interactive English lessons with international foreign teachers. The company’s flagship courses include Classic English and Classic English Junior for the development of English communication skills. It also offers American Academy and Small Class courses; 51 Talk New Concept English course; and various specialty courses, such as Business English, IELTS Speaking, Free-talk, Interview English, Travel English, and Daily English for situation-based English education and test preparation needs. China Online Education Group was founded in 2011 and is headquartered in Beijing, the People’s Republic of China.
Learning Tree International Company Profile
Learning Tree International, Inc., together with its subsidiaries, develops, markets, and delivers a library of instructor-led classroom courses for professional development needs of information technology (IT) professionals and managers worldwide. It offers education and training courses across a range of technical and management disciplines, such as operating systems, databases, computer networks, cyber and network security, Web development, programming languages, software engineering, open source applications, project management, business skills, leadership, and professional development. The company also provides courses through its proprietary live online learning platform, Learning Tree AnyWare that allow individuals at any location to participate online in instructor-led classes conducted live in its Education Centers, at customer locations, or at other facilities; and workforce optimization solutions to support an IT organization’s life-cycle of workforce development needs. As of September 29, 2018, its library of instructor-led courses comprised 299 instructor-led course titles, including 181 multi-day IT course titles, 82 multi-day management course titles, and 36 one-day course titles. The company markets and sells its course offerings through direct and electronic mail, telemarketing, and field sales channels. It serves national and multinational companies, government organizations, and small and medium-size companies. The company was founded in 1974 and is headquartered in Herndon, Virginia. Learning Tree International, Inc. is a subsidiary of The Kevin Ross Gruneich Legacy Trust.
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