Schibsted ASA (OTCMKTS:SBSNF) versus Educational Development (NASDAQ:EDUC) Critical Review

Educational Development (NASDAQ:EDUC) and Schibsted ASA (OTCMKTS:SBSNF) are both consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Valuation and Earnings

This table compares Educational Development and Schibsted ASA’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Educational Development	$87.83 million	0.20	-$2.51 million	$0.02	101.05
Schibsted ASA	N/A	N/A	N/A	$12.97	2.31

Schibsted ASA has lower revenue, but higher earnings than Educational Development. Schibsted ASA is trading at a lower price-to-earnings ratio than Educational Development, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Educational Development and Schibsted ASA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Educational Development	0	0	0	0	N/A
Schibsted ASA	0	1	1	0	2.50

Institutional & Insider Ownership

19.6% of Educational Development shares are owned by institutional investors. Comparatively, 20.9% of Schibsted ASA shares are owned by institutional investors. 26.2% of Educational Development shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Educational Development and Schibsted ASA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Educational Development	0.42%	0.53%	0.25%
Schibsted ASA	N/A	N/A	N/A

Summary

Educational Development beats Schibsted ASA on 6 of the 9 factors compared between the two stocks.

About Educational Development

Educational Development Corporation, a publishing company, operates as a publisher of educational children's books in the United States. It operates through two segments, PaperPie and Publishing. The company offers various books, including touchy-feely board books, activity books and flashcards, adventure and search books, art books, sticker books, and foreign language books, as well as internet-linked books comprising science and math titles, and chapter books and novels. It markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers, and its internal tele-sales group; and through a network of independent sales consultants through internet sales, direct sales, home shows, and book fairs. Educational Development Corporation was incorporated in 1965 and is headquartered in Tulsa, Oklahoma.

About Schibsted ASA

Schibsted ASA, together with its subsidiaries, operates as a media company. The company operates through Nordic Marketplaces, News Media, eCommerce & Distribution, and Financial Services & Ventures segments. It operates online classifieds that provide technology-based services to connect buyers and sellers, and facilitate transactions, including job offers, real estate, cars, travel, consumer goods, and others. The company also publishes newspapers under the VG, Aftenposten, E24, Bergens Tidende, Stavanger Aftenblad, Aftonbladet, Svenska Dagbladet, and Omni brands in paper and digital format; and operates Podme, a podcast platform. In addition, the company distributes newspapers and parcels for businesses and consumers under the Helthjem and Morgenlevering brands. Further, it has a portfolio of digital companies, which include Lendo that offers digital marketplaces for consumer lending; Prisjakt, which offers price comparison for consumers; Ingrid, a delivery platform; Tørn, a marketplace for surplus construction goods; and Savr, a fund platform. The company operates in Norway, Sweden, Finland, Denmark, other European countries, and internationally. Schibsted ASA was founded in 1839 and is headquartered in Oslo, Norway.