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Contrasting Grand Canyon Education (LOPE) and RYB Education (RYB)

Grand Canyon Education (NASDAQ: LOPE) and RYB Education (NYSE:RYB) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Earnings & Valuation

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This table compares Grand Canyon Education and RYB Education’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Grand Canyon Education $974.13 million 5.41 $203.31 million $3.96 27.59
RYB Education $140.80 million 3.47 $7.11 million $0.27 63.07

Grand Canyon Education has higher revenue and earnings than RYB Education. Grand Canyon Education is trading at a lower price-to-earnings ratio than RYB Education, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Grand Canyon Education and RYB Education’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Grand Canyon Education 22.07% 22.00% 16.33%
RYB Education N/A N/A N/A

Insider and Institutional Ownership

95.7% of Grand Canyon Education shares are owned by institutional investors. Comparatively, 5.4% of RYB Education shares are owned by institutional investors. 2.4% of Grand Canyon Education shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Grand Canyon Education and RYB Education, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Grand Canyon Education 0 0 4 0 3.00
RYB Education 0 2 0 0 2.00

Grand Canyon Education presently has a consensus target price of $107.75, indicating a potential downside of 1.37%. Given Grand Canyon Education’s stronger consensus rating and higher possible upside, analysts clearly believe Grand Canyon Education is more favorable than RYB Education.

Summary

Grand Canyon Education beats RYB Education on 12 of the 13 factors compared between the two stocks.

About Grand Canyon Education

Grand Canyon Education, Inc., together with its subsidiaries, provides education services in the United States and Canada. The company operates Grand Canyon University that offers approximately 225 graduate and undergraduate degree programs and certificates across 9 colleges online and on ground through campus in Phoenix, Arizona; leased facilities; and facilities owned by third party employers. As of December 31, 2017, it had approximately 90,300 students enrolled in its programs. The company was founded in 1949 and is based in Phoenix, Arizona.

About RYB Education

RYB Education, Inc. provides early childhood education service in the People's Republic of China. The company offers kindergarten services to 2-6-year-old children; and play-and-learn centers services for the joint participation of 0-6-year-old children and their families to promote children's development and prepare them for their entry into kindergartens and primary schools. It also develops and sells educational products and services, such as teaching aids, educational toys, at-home educational products, and school uniforms through franchisees and alliance participants, as well as directly to a market of families. As of December 31, 2017, it operated 85 directly operated and 210 franchise kindergartens; and 953 play-and-learn centers. The company was formerly known as Top Margin Limited and changed its name to RYB Education, Inc. in June 2017. RYB Education, Inc. was founded in 1998 and is based in Beijing, China.