Wah Fu Education Group (NASDAQ:WAFU) and RISE Education Cayman (NASDAQ:REDU) are both small-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Volatility and Risk

Wah Fu Education Group has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500. Comparatively, RISE Education Cayman has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Wah Fu Education Group and RISE Education Cayman, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wah Fu Education Group 0 0 0 0 N/A
RISE Education Cayman 0 1 1 0 2.50

RISE Education Cayman has a consensus target price of $6.50, indicating a potential upside of 103.44%. Given RISE Education Cayman’s higher possible upside, analysts plainly believe RISE Education Cayman is more favorable than Wah Fu Education Group.

Institutional and Insider Ownership

10.3% of RISE Education Cayman shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Wah Fu Education Group and RISE Education Cayman’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wah Fu Education Group N/A N/A N/A N/A N/A
RISE Education Cayman $219.69 million 0.82 $21.27 million $0.53 6.03

RISE Education Cayman has higher revenue and earnings than Wah Fu Education Group.

Profitability

This table compares Wah Fu Education Group and RISE Education Cayman’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wah Fu Education Group N/A N/A N/A
RISE Education Cayman 0.69% 7.59% 1.50%

Summary

RISE Education Cayman beats Wah Fu Education Group on 8 of the 8 factors compared between the two stocks.

About Wah Fu Education Group

Wah Fu Education Group Limited, through its subsidiaries, provides online exam preparation services and related technology solutions in China. It operates in two segments, Online Education Services; and Technological Development and Operation Services. The Online Education Services segment offers online education platforms to institutions, such as universities and training institutions, and online course development service companies. This segment provides self-study examination, continuing education, and non-diploma training platforms that allow students to enroll in courses for college credit; and online training and examination preparation services directly to students. The Technological Development and Operation Services segment develops and maintains online education platforms and online courses for its clients, including universities and government agencies, as well as private clients, such as publishers and education service companies; and provides consulting, maintenance, and updating services related to online education programs. The company was founded in 1999 and is headquartered in Beijing, China.

About RISE Education Cayman

RISE Education Cayman Ltd, through its subsidiaries, provides junior English language training services under the RISE brand name in the People's Republic of China. The company offers a range of educational programs, services, and products, including educational courses, sale of course materials, franchise services, and study tours. It also provides educational consulting services. As of December 31, 2017, the company had a network of 270 learning centers comprising 64 self-owned centers and 206 franchised learning centers across 85 cities in the People's Republic of China. RISE Education Cayman Ltd was founded in 2007 and is headquartered in Beijing, the People's Republic of China.

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