Which company offers more value? New Oriental Education & Technology Group, Inc. (EDU) or CBL & Associates Properties, Inc. (CBL)

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The shares of New Oriental Education & Technology Group, Inc. (NYSE:EDU) and CBL & Associates Properties, Inc. (NYSE:CBL) were among the active stocks of the last trading sessions. New Oriental Education & Technology Group, Inc. (NYSE:EDU) soared to 3.77% closing at the price of $63.04 whereas the shares of CBL & Associates Properties, Inc. (NYSE:CBL) declined -0.78% with the decrease of -0.03 points closing at the price of $3.8. New Oriental Education & Technology Group, Inc. has currently decrease -33.97% in its stock over the period of 6-months while its rival CBL & Associates Properties, Inc. subtracted -14.61% in the previous 6-months.

Now we have to analyze the facts that if the stocks were worthy off investors’ money? The facts to analyze here are risks, profitability, returns and price trends.

Returns and Profitability

Profitability and returns are the main reason of investment, the investors are looking for profits that they get and return they should expect over the period of time.

The first and foremost return that is considered while making an investment is the ROI or Return on Investment. The ROI is the ratio between the profit against the cost of investment. Currently the ROI of New Oriental Education & Technology Group, Inc. (NYSE:EDU) is 10.2% while the ROI of CBL & Associates Properties, Inc. (NYSE:CBL) is 5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, EDU’s EBITDA Margin is 21.23 whereas CBL’s is 8.45.

Both the profitability ratios suggest that New Oriental Education & Technology Group, Inc. (NYSE:EDU) is more suitable investment in terms of profitability and return.

EPS & Surprise Factor

New Oriental Education & Technology Group, Inc. (NYSE:EDU) reported $0.55/share EPS for the previous quarter where analysts were predicting an EPS to be $0.53/share Thus beating the analyst Estimates with a Surprise Factor of 3.8 Percent. While, CBL & Associates Properties, Inc. (NYSE:CBL) reported EPS of $0.1/share in the last quarter. The analysts projected EPS of $0.03/share depicting a Surprise of 233.3 Percent.

Taking a look at Earnings per Share, CBL & Associates Properties, Inc. tends to be beating the analyst estimates more than New Oriental Education & Technology Group, Inc.. so CBL is more profitable than EDU.

Technical Analysis of New Oriental Education & Technology Group, Inc. & CBL & Associates Properties, Inc.

Moving average convergence divergence (MACD) shows that New Oriental Education & Technology Group, Inc. (NYSE:EDU) is on a PRICE RELATIVITY trend While CBL & Associates Properties, Inc. (NYSE:CBL) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the New Oriental Education & Technology Group, Inc. was in BEARISH territory and CBL & Associates Properties, Inc. was in BEARISH territory.

EDU’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While CBL’s candle is BEARISH with MEDIUM.

EPS Growth Rate: EDU’s 31.42% versus CBL’s 4.9%

Another shareholder value can be analyzed through the EPS growth rate; the next 5 years EPS growth rate is predicted by the analysts after the analyzing the previous trends. The next 5 year EPS growth rate of New Oriental Education & Technology Group, Inc. (NYSE:EDU) is predicted at 31.42% while CBL & Associates Properties, Inc. (NYSE:CBL) stands at 4.9%. These numbers suggest that EDU is more suitable investment in terms of EPS growth rate.

Financial Risk and Liquidity Concerns

The current ratio and the debt ratio are the two ratios that show the investor how quickly the company is able to payout its debt and how quickly it can cover its obligations. The current ratio of EDU stands at 1.7 while CBL is at 0 whereas the debt ratio of the prior is 0 while the debt ratio of the later is 3.84.

The values of the both ratios suggest that one is more liquid and other investment is more risk free.

Analyst Recommendations

While making an investment, another main factor to consider before investing is the analyst recommendation on the scale of 1 to 5 where 1 is strong buy, 2 is buy, 3 is hold, 4 is Sell and 5 is strong sell. Analyst recommend 1.9 for EDU and 3.9 for CBL which means EDU has Buy rating whereas CBL has Sell rating.

Another recommendation of analyst that is to be considered worthy is the price target. The mare price or price trend does not suggest the suitability of a stock. The price target set by analyst is also to be considered while investing as it suggests to what extent the stock will rise or fall in the near future. The price target set for EDU is $110.25 which is 42.82% of its current price while CBL has price target of 3.86 which is 1.55% of its current price.

Valuation Ratios

Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.

EDU currently has price to earning P/E ratio of 33.51 whereas CBL has 0 while the forward P/E ratio for the prior stands at 16.04 and for the later it depicts the value of 0.

The price to Book P/B for EDU is 4.83, Price to Sale is at 4.13 and for CBL these ratios stand at 0.6 and 0.72.