Head-To-Head Analysis: American Public Education (APEI) & China Distance Education (DL)

American Public Education (NASDAQ: APEI) and China Distance Education (NYSE:DL) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Risk and Volatility

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American Public Education has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, China Distance Education has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.

Insider & Institutional Ownership

94.1% of American Public Education shares are owned by institutional investors. Comparatively, 22.1% of China Distance Education shares are owned by institutional investors. 3.2% of American Public Education shares are owned by company insiders. Comparatively, 41.6% of China Distance Education shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares American Public Education and China Distance Education’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Public Education	7.10%	7.90%	6.71%
China Distance Education	3.94%	9.25%	2.65%

Analyst Ratings

This is a summary of recent recommendations for American Public Education and China Distance Education, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Public Education	0	3	1	0	2.25
China Distance Education	0	0	0	0	N/A

American Public Education currently has a consensus price target of $39.33, suggesting a potential downside of 11.91%. Given American Public Education’s higher probable upside, analysts clearly believe American Public Education is more favorable than China Distance Education.

Valuation & Earnings

This table compares American Public Education and China Distance Education’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Public Education	$299.25 million	2.45	$21.12 million	$1.29	34.61
China Distance Education	$130.99 million	1.90	$14.93 million	N/A	N/A

American Public Education has higher revenue and earnings than China Distance Education.

Summary

American Public Education beats China Distance Education on 8 of the 12 factors compared between the two stocks.

American Public Education Company Profile

American Public Education, Inc., together with its subsidiaries, provides online and campus-based postsecondary education. The company operates through two segments, American Public Education and Hondros College of Nursing. It offers 108 degree programs and 109 certificate programs in various fields of study, including business administration, health science, technology, criminal justice, education, and liberal arts, as well as national security, military studies, intelligence, and homeland security. The company also provides diploma in practical nursing and an associate degree in nursing; and an online registered nurse to Bachelor of Science in nursing completion program. American Public Education, Inc. was founded in 1991 and is headquartered in Charles Town, West Virginia.

China Distance Education Company Profile

China Distance Education Holdings Limited provides online and offline education services, and sells related products in the People's Republic of China. It operates through three segments: Online Education Services, Business Start-Up Training Services, and The Sale of Learning Simulation Software. The company offers online professional education services in accounting, healthcare, and engineering and construction industries; and other professional education courses, such as online test-preparation courses for the national judicial examination and self-taught learners pursuing higher education diplomas or degrees, test preparation courses for university students, accounting practical skills training courses, and online language courses. Its online courses feature pre-recorded audio-video lectures taught by experts; and other content, such as course outlines, exercise questions, mock exams, and frequently asked questions and answers. The company's online lectures are supplemented by its proprietary Learning Management System, which tracks individual study progress, records course notes, and collects incorrectly answered questions. As of September 30, 2017, it operated 25 Websites, including its primary Website cdeledu.com. In addition, the company operates an Open Learning Platform, a proprietary education platform to share educational content and deliver live courses online; and sells proprietary books and reference materials. Further, it provides business start-up training courses to university students, job seekers, and individuals; offline accounting and healthcare professional training, courseware production, and online platform development services; and mobile accounting, engineering and construction, healthcare, and legal courses through an app on Android and Apple iOS tablets and smart phones, as well as sells learning simulation software to the college market. The company was founded in 2000 and is based in Beijing, the People's Republic of China.