Critical Review: OneSmart International Education Group (ONE) versus Adtalem Global Education (ATGE)

OneSmart International Education Group (NYSE: ONE) and Adtalem Global Education (NYSE:ATGE) are both mid-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Profitability

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This table compares OneSmart International Education Group and Adtalem Global Education’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OneSmart International Education Group N/A N/A N/A
Adtalem Global Education 0.89% 10.06% 7.01%

Earnings & Valuation

This table compares OneSmart International Education Group and Adtalem Global Education’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
OneSmart International Education Group N/A N/A N/A N/A N/A
Adtalem Global Education $1.81 billion 1.61 $122.28 million $2.79 17.28

Adtalem Global Education has higher revenue and earnings than OneSmart International Education Group.

Institutional & Insider Ownership

97.8% of Adtalem Global Education shares are held by institutional investors. 12.7% of OneSmart International Education Group shares are held by insiders. Comparatively, 3.0% of Adtalem Global Education shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for OneSmart International Education Group and Adtalem Global Education, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OneSmart International Education Group 0 0 2 0 3.00
Adtalem Global Education 0 1 4 0 2.80

OneSmart International Education Group presently has a consensus target price of $14.00, indicating a potential downside of 11.28%. Adtalem Global Education has a consensus target price of $52.80, indicating a potential upside of 9.54%. Given Adtalem Global Education’s higher probable upside, analysts plainly believe Adtalem Global Education is more favorable than OneSmart International Education Group.

Summary

Adtalem Global Education beats OneSmart International Education Group on 7 of the 9 factors compared between the two stocks.

About OneSmart International Education Group

OneSmart International Education Group Limited provides tutoring services for kindergarten and primary, middle, and high schools in the People's Republic of China. It offers young children services, including Chinese language and computer programming under the HappyMath brand; and English tutoring services focusing on early childhood under the brand FasTrack English brand. The company also provides language and culture programs, such as English language study under the OneSmart Elite English brand; overseas study test preparation services under the OneSmart overseas Language Training brand; and summer and winter study tours under the OneSmart Study Camp brand. As of November 30, 2017, it operated a network of 225 study centers across 42 cities in China. The company was formerly known as OneSmart Education Group Limited. OneSmart International Education Group Limited was incorporated in 2017 and is headquartered in Shanghai, the People's Republic of China.

About Adtalem Global Education

Adtalem Global Education Inc. provides educational services worldwide. It operates through four segments: Medical and Healthcare, Professional Education, Technology and Business, and U.S. Traditional Postsecondary. The Medical and Healthcare segment operates Chamberlain University, which provides pre and post-licensure bachelor's, master's, and doctorate degree programs in nursing through campus and online; American University of the Caribbean School of Medicine and Ross University School of Medicine, which provide medical education; and Ross University School of Veterinary Medicine that offers veterinary education. The Professional Education segment operates Becker Professional Education, which provides professional education serving the accounting, finance, project management, and healthcare professions. The Technology and Business segment operates approximately 13 institutions that offer undergraduate and graduate programs primarily in the areas of technology, engineering, business, management, medical, healthcare, and law, as well as legal bar exam review courses and review courses for tests required for diplomatic careers. The Business, Technology and Management segment operates DeVry University that offer career-oriented master's, bachelor's, and associate degree and certificate programs in technology, science, business, and the arts. The company was formerly known as DeVry Education Group Inc. and changed its name to Adtalem Global Education Inc. in May 2017. Adtalem Global Education Inc. was founded in 1931 and is headquartered in Downers Grove, Illinois.

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