Coursera (NYSE:COUR – Get Free Report) and New Oriental Education & Technology Group (NYSE:EDU – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.
Institutional & Insider Ownership
89.5% of Coursera shares are held by institutional investors. 16.3% of Coursera shares are held by company insiders. Comparatively, 15.5% of New Oriental Education & Technology Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Coursera and New Oriental Education & Technology Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Coursera | -15.39% | -1.72% | -1.07% |
| New Oriental Education & Technology Group | 8.39% | 11.32% | 5.84% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Coursera | 1 | 4 | 7 | 0 | 2.50 |
| New Oriental Education & Technology Group | 0 | 2 | 4 | 1 | 2.86 |
Coursera presently has a consensus target price of $8.55, suggesting a potential upside of 63.86%. New Oriental Education & Technology Group has a consensus target price of $61.92, suggesting a potential upside of 10.93%. Given Coursera’s higher probable upside, analysts plainly believe Coursera is more favorable than New Oriental Education & Technology Group.
Volatility & Risk
Coursera has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, New Oriental Education & Technology Group has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500.
Valuation and Earnings
This table compares Coursera and New Oriental Education & Technology Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Coursera | $757.50 million | 1.82 | -$51.00 million | ($0.67) | -7.78 |
| New Oriental Education & Technology Group | $5.66 billion | 1.56 | $475.17 million | $2.96 | 18.86 |
New Oriental Education & Technology Group has higher revenue and earnings than Coursera. Coursera is trading at a lower price-to-earnings ratio than New Oriental Education & Technology Group, indicating that it is currently the more affordable of the two stocks.
Summary
New Oriental Education & Technology Group beats Coursera on 9 of the 15 factors compared between the two stocks.
About Coursera
Coursera, Inc. operates an online educational content platform in the United States, Europe, Africa, the Asia Pacific, the Middle East, and internationally. It operates in three segments: Consumer, Enterprise, and Degrees. The company offers guided projects, courses, and specializations, as well as online degrees; and certificates for entry-level professional, non-entry level professional, university, and MasterTrack. It offers its products to individuals, enterprise, business, campus, and government. The company was formerly known as Dkandu, Inc. and changed its name to Coursera, Inc. in April 2012. Coursera, Inc. was incorporated in 2011 and is headquartered in Mountain View, California.
About New Oriental Education & Technology Group
New Oriental Education & Technology Group, Inc. is a holding company, which engages in the provision of private educational services. It operates through the following segments: Educational Services and Test Preparation Courses, Private Label Products and Livestreaming E-Commerce, Overseas Study Consulting Services, and Educational Materials and Distribution. The company was founded by Min Hong Yu and Yong Qiang Qian on November 16, 1993, and is headquartered in Beijing, China.
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