Financial Survey: Afya (NASDAQ:AFYA) versus Wah Fu Education Group (NASDAQ:WAFU)

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

Insider and Institutional Ownership

88.0% of Afya shares are owned by institutional investors. 72.0% of Wah Fu Education Group shares are owned by company insiders. Comparatively, 0.8% of Afya shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Wah Fu Education Group and Afya”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wah Fu Education Group	$6.37 million	1.11	-$60,000.00	N/A	N/A
Afya	$3.30 billion	0.51	$77.38 million	$1.30	13.79

Afya has higher revenue and earnings than Wah Fu Education Group.

Analyst Ratings

This is a breakdown of recent ratings for Wah Fu Education Group and Afya, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wah Fu Education Group	0	0	0	0	0.00
Afya	3	2	0	0	1.40

Afya has a consensus price target of $17.60, suggesting a potential downside of 1.84%. Given Afya’s stronger consensus rating and higher possible upside, analysts plainly believe Afya is more favorable than Wah Fu Education Group.

Volatility and Risk

Wah Fu Education Group has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Afya has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Profitability

This table compares Wah Fu Education Group and Afya’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
Afya	18.42%	19.15%	9.43%

Summary

Afya beats Wah Fu Education Group on 8 of the 11 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 the People's Republic of China. The company operates through 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; vocational education 1+X and higher vocational enrollment expansion teaching and educational administration platform; Huafu e-school system and paperless examination platform; 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 provides consulting, maintenance, and updating services related to online education programs. In addition, the company produces online training course materials. Wah Fu Education Group Limited was founded in 1999 and is headquartered in Beijing, the People's Republic of China.

About Afya

Afya Limited, through its subsidiaries, operates as a medical education group in Brazil. The company operates through three segments: Undergrad, Continuing Education, and Digital Services. It offers educational products and services, including medical schools, medical residency preparatory courses, graduate courses, and other programs to lifelong medical learners enrolled across its distribution network, as well as to third-party medical schools. The company also provides digital health services, such as subscription-based mobile app and website portal that focuses on assisting health professionals and students with clinical decision-making through tools, such as medical calculators, charts, and updated content, as well as prescriptions, clinical scores, medical procedures and laboratory exams, and others. It offers health sciences courses, which comprise medicine, dentistry, nursing, radiology, psychology, pharmacy, physical education, physiotherapy, nutrition, and biomedicine; and degree programs and courses in other subjects and disciplines, including undergraduate and post graduate courses in business administration, accounting, law, civil engineering, industrial engineering, and pedagogy. In addition, the company provides medical postgraduate specialization programs; printed and digital content; and an online medical education platform and practical medical training services. The company was founded in 1999 and is headquartered in Nova Lima, Brazil.