RYB Education (RYB) & Bridgepoint Education (BPI) Critical Review

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Bridgepoint Education (NYSE: BPI) and RYB Education (NYSE:RYB) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings for Bridgepoint Education and RYB Education, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bridgepoint Education 0 1 1 0 2.50
RYB Education 0 2 0 0 2.00

Bridgepoint Education presently has a consensus target price of $13.00, indicating a potential upside of 81.31%. Given Bridgepoint Education’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Bridgepoint Education is more favorable than RYB Education.

Profitability

This table compares Bridgepoint Education and RYB Education’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bridgepoint Education 0.63% 7.03% 3.34%
RYB Education N/A N/A N/A

Earnings and Valuation

This table compares Bridgepoint Education and RYB Education’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bridgepoint Education $478.40 million 0.41 $10.53 million $0.59 12.15
RYB Education $140.80 million 4.53 $7.11 million $0.27 82.37

Bridgepoint Education has higher revenue and earnings than RYB Education. Bridgepoint Education is trading at a lower price-to-earnings ratio than RYB Education, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

81.2% of Bridgepoint Education shares are held by institutional investors. Comparatively, 8.3% of RYB Education shares are held by institutional investors. 31.9% of Bridgepoint Education shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Bridgepoint Education beats RYB Education on 11 of the 13 factors compared between the two stocks.

About Bridgepoint Education

Bridgepoint Education, Inc., together with its subsidiaries, provides postsecondary education services in the United States. Its academic institutions, Ashford University and University of the Rockies, offer associate's, bachelor's, master's, and doctoral degree programs in the disciplines of business, education, psychology, social sciences, and health sciences. The company offers its programs primarily through online; and at its campuses. As of December 31, 2017, its institutions offered approximately 1,200 courses and 80 degree programs; and had 45,730 students enrolled. The company was formerly known as TeleUniversity, Inc. and changed its name to Bridgepoint Education, Inc. in February 2004. Bridgepoint Education, Inc. was founded in 1999 and is headquartered in San Diego, California.

About RYB Education

RYB Education, Inc. provides early childhood education service in the People's Republic of China. The company offers kindergarten services to 2-6-year-old children; and play-and-learn centers services for the joint participation of 0-6-year-old children and their families to promote children's development and prepare them for their entry into kindergartens and primary schools. It also develops and sells educational products and services, such as teaching aids, educational toys, at-home educational products, and school uniforms through franchisees and alliance participants, as well as directly to a market of families. As of December 31, 2017, it operated 85 directly operated and 210 franchise kindergartens; and 953 play-and-learn centers. The company was formerly known as Top Margin Limited and changed its name to RYB Education, Inc. in June 2017. RYB Education, Inc. was founded in 1998 and is based in Beijing, China.

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