Comparing Strategic Education (NASDAQ:STRA) and Ambow Education (AMBOY)

Strategic Education (NASDAQ:STRA) and Ambow Education (OTCMKTS:AMBOY) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Dividends

Strategic Education pays an annual dividend of $2.00 per share and has a dividend yield of 1.8%. Ambow Education does not pay a dividend. Strategic Education pays out 64.3% of its earnings in the form of a dividend.

Insider & Institutional Ownership

91.7% of Strategic Education shares are owned by institutional investors. 3.7% of Strategic Education shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Strategic Education and Ambow Education’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Strategic Education $454.85 million 5.27 $20.61 million $3.11 35.53
Ambow Education N/A N/A N/A N/A N/A

Strategic Education has higher revenue and earnings than Ambow Education.

Analyst Recommendations

This is a summary of recent ratings for Strategic Education and Ambow Education, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Strategic Education 0 0 4 0 3.00
Ambow Education 0 0 0 0 N/A

Strategic Education currently has a consensus price target of $155.00, indicating a potential upside of 40.28%.

Profitability

This table compares Strategic Education and Ambow Education’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Strategic Education -8.74% 10.30% 8.05%
Ambow Education N/A N/A N/A

Summary

Strategic Education beats Ambow Education on 7 of the 9 factors compared between the two stocks.

Strategic Education Company Profile

Strategic Education, Inc., through its subsidiaries, provides a range of post-secondary education and other academic programs in the United States. The company operates Strayer University and Capella University that provide undergraduate and graduate degree programs in business administration, accounting, information technology, education, health services administration, nursing, public administration, and criminal justice to working adult students through its 74 physical campuses primarily located in the Mid-Atlantic and Southern regions, as well as through online. It also offers an executive MBA online through its Jack Welch Management Institute. In addition, the company operates New York Code and Design Academy that provides non-degree courses in Web and application software development primarily through its campus in New York City. Strayer Education, Inc. was founded in 1892 and is headquartered in Herndon, Virginia.

Ambow Education Company Profile

Ambow Education Holding Ltd. provides educational and career enhancement services to students, recent graduates, and corporate employees and management in China. The company operates through two business divisions, Better Schools and Better Jobs. The Better Schools division provides educational services covering K-12 programs and tutoring services that provide test preparation programs; and international education programs. This division operates tutoring centers that provide classroom instruction, small class, and one-on-one tutoring services for students to perform better in school and prepare for important tests, primarily high school and university entrance exams; and educational curriculum through its Web-based applications to allow students access to tutoring services. Its educational software products include eBoPo, which offers full subjects, online practice tests, and instruction for K-12 level students. The Better Jobs division offers career enhancement services that facilitate post-secondary students obtaining employment. This division provides students with hands-on training for professional skills, including case studies, job environment simulation, and specific technical skills; and soft skills training, including courses on time management, presentation, leadership, and interview techniques. As of December 31, 2016, it had a total of 45 centers and schools, including 12 tutoring centers, 4 K-12 schools, 10 career enhancement centers, 18 training offices, and 1 career enhancement campus. Ambow Education Holding Ltd. was founded in 2000 and is headquartered in Beijing, the People's Republic of China.

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