Udemy (NASDAQ:UDMY – Get Free Report) and New Oriental Education & Technology Group (NYSE:EDU – Get Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.
Volatility & Risk
Udemy has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500. Comparatively, New Oriental Education & Technology Group has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.
Valuation and Earnings
This table compares Udemy and New Oriental Education & Technology Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Udemy | $776.17 million | 1.44 | -$107.29 million | ($0.63) | -12.19 |
| New Oriental Education & Technology Group | $4.65 billion | 2.09 | $309.59 million | $2.34 | 24.51 |
Analyst Recommendations
This is a summary of current recommendations and price targets for Udemy and New Oriental Education & Technology Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Udemy | 1 | 4 | 7 | 0 | 2.50 |
| New Oriental Education & Technology Group | 0 | 0 | 3 | 0 | 3.00 |
Udemy currently has a consensus price target of $11.00, indicating a potential upside of 43.23%. New Oriental Education & Technology Group has a consensus price target of $99.67, indicating a potential upside of 73.76%. Given New Oriental Education & Technology Group’s stronger consensus rating and higher probable upside, analysts plainly believe New Oriental Education & Technology Group is more favorable than Udemy.
Profitability
This table compares Udemy and New Oriental Education & Technology Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Udemy | -12.33% | -29.36% | -11.85% |
| New Oriental Education & Technology Group | 8.38% | 9.43% | 5.27% |
Insider and Institutional Ownership
79.5% of Udemy shares are owned by institutional investors. 3.2% of Udemy shares are owned by insiders. Comparatively, 15.5% of New Oriental Education & Technology Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
New Oriental Education & Technology Group beats Udemy on 11 of the 14 factors compared between the two stocks.
About Udemy
Udemy, Inc., a learning company, that operates a marketplace platform for learning skills in the United States and internationally. The company offers skill acquisition, development, and validation courses for organizations and individuals, through direct-to-consumer or Udemy Business offerings in various languages. Its courses provide learning objectives, such as reskilling or upskilling in technology, business, soft skills, and personal development, as well as learners receive access to interactive learning tools comprising quizzes, exercises, and instructor questions-and-answers. The company was incorporated in 2010 and is headquartered in San Francisco, California.
About New Oriental Education & Technology Group
New Oriental Education & Technology Group Inc. provides private educational services under the New Oriental brand in the People’s Republic of China. The company operates through four segments: Educational Services and Test Preparation Courses; Online Education and Other Services; Overseas Study Consulting Services; and Educational Materials and Distribution. It offers test preparation courses to students taking language and entrance exams used by educational institutions in the United States, the Commonwealth countries, and the People’s Republic of China. The company also provides non-academic tutoring courses; intelligent learning systems and devices to offer a digital learning experience for students; and overseas studies consulting services. In addition, it offers online education services through the Koolearn.com platform that provides comprehensive online education courses, including college educational services, such as college test preparation, overseas test preparation, and English language learning for college students and working professionals preparing for standardized tests or seeking to enhance their English language proficiency; and educational content packages to schools and institutional customers, including universities, public libraries, telecom operators, and online video streaming providers. Further, the company develops and edits educational materials for language training and test preparation. In addition, it offers educational programs, services, and products to students through schools; learning centers; and bookstores, as well as through its online learning platforms. The company was founded in 1993 and is headquartered in Beijing, the People’s Republic of China.
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