Financial Analysis: Strategic Education (NASDAQ:STRA) & QuantaSing Group (NASDAQ:QSG)

QuantaSing Group (NASDAQ:QSG) and Strategic Education (NASDAQ:STRA) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Profitability

This table compares QuantaSing Group and Strategic Education’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QuantaSing Group	10.67%	88.29%	28.26%
Strategic Education	10.44%	7.61%	5.89%

Valuation & Earnings

This table compares QuantaSing Group and Strategic Education”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuantaSing Group	$3.48 billion	0.05	$53.05 million	$1.05	3.26
Strategic Education	$1.22 billion	1.73	$69.79 million	$4.67	18.34

Strategic Education has lower revenue, but higher earnings than QuantaSing Group. QuantaSing Group is trading at a lower price-to-earnings ratio than Strategic Education, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for QuantaSing Group and Strategic Education, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuantaSing Group	0	0	0	0	0.00
Strategic Education	0	0	3	0	3.00

Strategic Education has a consensus target price of $112.33, suggesting a potential upside of 31.14%. Given Strategic Education’s stronger consensus rating and higher probable upside, analysts clearly believe Strategic Education is more favorable than QuantaSing Group.

Insider & Institutional Ownership

93.3% of Strategic Education shares are owned by institutional investors. 3.3% of Strategic Education shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

QuantaSing Group has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, Strategic Education has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Summary

Strategic Education beats QuantaSing Group on 10 of the 14 factors compared between the two stocks.

About QuantaSing Group

QuantaSing Group Limited provides online learning services in the People's Republic of China. The company offers online courses, including financial literacy, short-video production, personal well-being, electronic keyboard, and meditation courses. It also offers marketing and enterprise talent management services to enterprise customers. In addition, the company provides online and literacy course to adult learners under various brands, including QiNiu, JiangZhen, and QianChi. QuantaSing Group Limited was founded in 2019 and is headquartered in Beijing, the People's Republic of China.

About Strategic Education

Strategic Education, Inc., through its subsidiaries, provides education services through campus-based and online post-secondary education, and programs to develop job-ready skills. The company operates through U.S. Higher Education, Australia/New Zealand, and Education Technology Services segments. It operates Strayer University that offers undergraduate and graduate degree programs in business, criminal justice, education, health services, information technology, and public administration at physical campuses located in the eastern United States, as well as through online; non-degree web and mobile application development courses through Hackbright Academy and Devmountain; and MBA online through its Jack Welch Management Institute. In addition, the company operates Capella University that provides post-secondary education; Torrens University, which offers undergraduate, graduate, higher degree by research, and specialized degree courses primarily in business, design and creative technology, health, hospitality, and education fields through online and on physical campuses located in Australia; Think Education, a vocational training organization; and Media Design School, which provides industry-endorsed courses in 3D animation and visual effects, game art and programming, graphic and motion design, digital media artificial intelligence, and creative advertising in New Zealand. It also offers Workforce Edge, a platform to employers that provides education benefits administration solutions; and Sophia Learning, which enables lower cost education benefits programs. Strategic Education, Inc. was founded in 1892 and is headquartered in Herndon, Virginia.