GP Strategies Corporation (NYSE: GPX) and Tarena International (NASDAQ:TEDU) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitabiliy.

Profitability

This table compares GP Strategies Corporation and Tarena International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GP Strategies Corporation 4.13% 12.45% 6.61%
Tarena International 14.79% 15.89% 11.60%

Valuation & Earnings

This table compares GP Strategies Corporation and Tarena International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
GP Strategies Corporation $497.25 million 0.86 $38.74 million $1.22 21.07
Tarena International $239.60 million 4.34 $42.67 million $0.61 30.25

Tarena International has higher revenue, but lower earnings than GP Strategies Corporation. GP Strategies Corporation is trading at a lower price-to-earnings ratio than Tarena International, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

GP Strategies Corporation has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Tarena International has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for GP Strategies Corporation and Tarena International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GP Strategies Corporation 0 1 0 0 2.00
Tarena International 0 1 2 0 2.67

GP Strategies Corporation presently has a consensus target price of $27.00, indicating a potential upside of 5.06%. Tarena International has a consensus target price of $17.80, indicating a potential downside of 3.52%. Given GP Strategies Corporation’s higher possible upside, equities analysts clearly believe GP Strategies Corporation is more favorable than Tarena International.

Dividends

Tarena International pays an annual dividend of $0.14 per share and has a dividend yield of 0.8%. GP Strategies Corporation does not pay a dividend. Tarena International pays out 23.0% of its earnings in the form of a dividend.

Institutional and Insider Ownership

87.8% of GP Strategies Corporation shares are owned by institutional investors. Comparatively, 35.5% of Tarena International shares are owned by institutional investors. 24.9% of GP Strategies Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Tarena International beats GP Strategies Corporation on 9 of the 15 factors compared between the two stocks.

GP Strategies Corporation Company Profile

GP Strategies Corporation (GP Strategies) is a global performance improvement solutions provider of sales and technical training, e-learning solutions, management consulting and engineering services. The Company operates in five segments: Learning Solutions, Professional & Technical Services, Sandy Training & Marketing, RWD and Energy Services. Its clients include companies and governmental and other commercial customers in a variety of industries. It serves companies in the automotive, steel, oil and gas, power, chemical, electronics and technology, manufacturing, software, financial, retail, healthcare and food and beverage industries, as well as government agencies. On December 31, 2011, GP Strategies Corporation merged with and into its operating subsidiary, General Physics Corporation (General Physics). In April 2014, the Company acquired Effective-People and Effective-Learning companies.

Tarena International Company Profile

Tarena International, Inc. (Tarena International) is a holding company. The Company, through its subsidiaries, provides professional education services, including professional information technology (IT) training courses and non-IT training courses across the People’s Republic of China (PRC). It operates through training segment. It offers courses in over 10 IT subjects and approximately three non-IT subjects, and over two kid education programs. It offers an education platform that combines live distance instruction, classroom-based tutoring and online learning modules. It complements the live instruction and tutoring with its learning management system, Tarena Teaching System (TTS). TTS has over five core functions, featuring course content, self-assessment exams, student and teaching staff interaction tools, student management tools and an online student community. In addition, the Company offers Tongcheng and Tongmei featuring IT training courses and non-IT training courses.

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