Contrasting New Oriental Education & Tech Grp (NYSE:EDU) and Legacy Education Alliance (NYSE:LEAI)

Legacy Education Alliance (OTCMKTS:LEAI) and New Oriental Education & Tech Grp (NYSE:EDU) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Profitability

This table compares Legacy Education Alliance and New Oriental Education & Tech Grp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Legacy Education Alliance -9.98% N/A -39.17%
New Oriental Education & Tech Grp 8.80% 14.88% 7.43%

Insider & Institutional Ownership

85.8% of New Oriental Education & Tech Grp shares are held by institutional investors. 25.9% of Legacy Education Alliance shares are held by company insiders. Comparatively, 15.5% of New Oriental Education & Tech Grp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Legacy Education Alliance has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500. Comparatively, New Oriental Education & Tech Grp has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Legacy Education Alliance and New Oriental Education & Tech Grp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Legacy Education Alliance 0 0 0 0 N/A
New Oriental Education & Tech Grp 0 1 8 0 2.89

New Oriental Education & Tech Grp has a consensus price target of $91.33, indicating a potential downside of 1.61%. Given New Oriental Education & Tech Grp’s higher probable upside, analysts clearly believe New Oriental Education & Tech Grp is more favorable than Legacy Education Alliance.

Earnings & Valuation

This table compares Legacy Education Alliance and New Oriental Education & Tech Grp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Legacy Education Alliance $93.41 million 0.04 -$9.96 million N/A N/A
New Oriental Education & Tech Grp $2.45 billion 5.41 $296.13 million $1.87 49.64

New Oriental Education & Tech Grp has higher revenue and earnings than Legacy Education Alliance.

Summary

New Oriental Education & Tech Grp beats Legacy Education Alliance on 9 of the 11 factors compared between the two stocks.

About Legacy Education Alliance

Legacy Education Alliance, Inc. provides educational training on the topics of personal finance, entrepreneurship, real estate, and financial markets investing strategies and techniques in North America, the United Kingdom, and internationally. The company's product offerings include Rich Dad Education, which is based on the teachings of Robert Kiyosaki; Rich Dad Stock Education program that teaches students how to become savvy investors; Making Money from Property with Martin Roberts, a property-based curriculum; and Brick Buy Brick program that introduces its students to the tools and strategies used by successful investors to make money work for them through real estate investing. It also provides Building Wealth program that trains students on how to build and preserve wealth, start or manage a business, and benefit through investing in property; Robbie Fowler Property Academy for teaching investment strategies; Women In Wealth program to empower women with a financial education; Perform in Property program that helps students to achieve level of performance and financial independence they desire; Teach Me to Trade program to learn the core concepts of trading in the financial markets; Trade Up Investor Education that helps students to enhance their knowledge of stock and options trading; and Elite training courses. The company offers its programs through various formats and channels, including free-preview workshops, basic training classes, symposiums, telephone mentoring, one-on-one mentoring, coaching, and e-learning. Legacy Education Alliance, Inc. is based in Cape Coral, Florida.

About New Oriental Education & Tech Grp

New Oriental Education & Technology Group Inc. provides private educational services under the New Oriental brand in the People's Republic of China. It operates through Language Training and Test Preparation Courses, and Others segments. The company offers test preparation courses to students taking language and entrance exams used by educational institutions in the United States, the People's Republic of China, and the Commonwealth countries; and after-school tutoring courses for middle and high school students to achieve better scores on entrance exams for admission into high schools or higher education institutions, as well as for children to teach English. It also provides language training courses, including English, as well as other foreign languages, such as German, Japanese, French, Korean, Italian, and Spanish; operates a full-time private primary and secondary school in Yangzhou seeking a full curriculum taught in Chinese and English; develops and edits educational materials for language training and test preparation comprising books, software, CD-ROMs, magazines, and other periodicals; and offers online education programs that include college, K-12, and pre-school education. In addition, the company offers overseas studies consulting; pre-school education; and a pilot program that permits third parties in small cities to provide its English and kindergarten programs, as well as overseas study tour services. As of May 31, 2018, it offered educational programs, services, and products to students through a network of 87 schools, 994 learning centers, and 18 bookstores. The company was founded in 1993 and is headquartered in Beijing, the People's Republic of China.

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