Creative Learning (OTCMKTS:CLCN) and Tarena International (NASDAQ:TEDU) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a summary of current ratings and price targets for Creative Learning and Tarena International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Creative Learning 0 0 0 0 N/A
Tarena International 3 0 0 0 1.00

Tarena International has a consensus target price of $6.90, suggesting a potential upside of 363.09%. Given Tarena International’s higher possible upside, analysts clearly believe Tarena International is more favorable than Creative Learning.

Profitability

This table compares Creative Learning and Tarena International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Creative Learning N/A N/A N/A
Tarena International -26.91% -49.52% -26.84%

Risk and Volatility

Creative Learning has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, Tarena International has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.

Valuation and Earnings

This table compares Creative Learning and Tarena International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Creative Learning $2.46 million 0.29 -$1.03 million N/A N/A
Tarena International $323.79 million 0.25 -$90.02 million ($1.57) -0.95

Creative Learning has higher earnings, but lower revenue than Tarena International.

Insider & Institutional Ownership

25.7% of Tarena International shares are held by institutional investors. 35.1% of Creative Learning shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Creative Learning beats Tarena International on 7 of the 10 factors compared between the two stocks.

Creative Learning Company Profile

Creative Learning Corporation provides educational and enrichment programs under the Bricks 4 Kidz and Sew Fun Studios trade names in the United States and internationally. The company's programs are offered to children ages 3 to 13+, which include in-school workshops, and after-school and pre-school classes, as well as classes for home-schooled children; and camps, birthday parties, and special events that are designed to enhance and enrich the traditional school curriculum, trigger young children's lively imaginations, and build self-confidence. As of September 30, 2017, it had 531 Bricks 4 Kidz and Sew Fun Studios franchises, 30 Bricks 4 Kidz master franchises, and 91 Bricks 4 Kidz sub-franchises operating in 44 countries. Creative Learning Corporation was founded in 2009 and is based in St. Augustine, Florida.

Tarena International Company Profile

Tarena International, Inc., through its subsidiaries, provides professional education services through full-time and part-time classes in the People's Republic of China. It offers education courses in 13 information technology (IT) subjects, such as Java, .NET, C++, software testing, embedded, PHP, Android, iOS, Linux and network engineering, Big Data, Web front-end development, VR/AR, and Python; and 3 non-IT subjects, including digital art, online sales and marketing, and accounting through live distance instruction, classroom-based tutoring, and online learning modules. The company also provides three kid education programs under the TongchengTongmei brand name. As of December 31, 2017, it had a network of 184 directly managed learning centers in 59 cities. Tarena International, Inc. was founded in 2002 and is headquartered in Beijing, the People's Republic of China.

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