Critical Analysis: American Public Education (NASDAQ:APEI) & East Buy (OTCMKTS:KLTHF)

American Public Education (NASDAQ:APEI) and East Buy (OTCMKTS:KLTHF) are both consumer defensive companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Earnings and Valuation

This table compares American Public Education and East Buy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Public Education	$610.97 million	0.43	-$47.29 million	($2.62)	-5.65
East Buy	N/A	N/A	N/A	N/A	N/A

East Buy has lower revenue, but higher earnings than American Public Education.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American Public Education	1.73%	6.88%	3.05%
East Buy	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent recommendations and price targets for American Public Education and East Buy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Public Education	0	1	2	0	2.67
East Buy	0	0	0	0	N/A

American Public Education presently has a consensus target price of $16.33, suggesting a potential upside of 10.36%. Given American Public Education’s higher possible upside, research analysts clearly believe American Public Education is more favorable than East Buy.

Insider & Institutional Ownership

79.6% of American Public Education shares are held by institutional investors. 11.4% of American Public Education shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

American Public Education beats East Buy on 8 of the 8 factors compared between the two stocks.

About American Public Education

American Public Education, Inc., together with its subsidiaries, provides online and campus-based postsecondary education and career learning in the United States. It operates through three segments: American Public University System, Rasmussen University, and Hondros College of Nursing. The company offers 184 degree programs and 134 certificate programs in various fields of study, including nursing, national security, military studies, intelligence, homeland security, business, health science, information technology, justice studies, education, and liberal arts; and career learning opportunities in leadership, finance, human resources, and other fields of study critical to the federal government workforce. It also provides nursing-and health sciences-focused postsecondary education, pre-licensure nursing programs, diploma in practical nursing, and an associate degree in nursing. The company was incorporated in 1991 and is headquartered in Charles Town, West Virginia.

About East Buy

East Buy Holding Limited, an investment holding company, primarily engages in the provision of online education services in China. The company operates through Private Label Products and Livestreaming E-Commerce, College Education, and Institutional Customers segments. The Private Label Products and Livestreaming E-Commerce segment operates an online livestreaming e-commerce platform under its private label, East Buy, which sells agricultural and other products to individual customers. The College Education segment offers online education services for the preparation of postgraduate entrance exams, TOEFL, and IELTS, as well as English learning courses to college and above students, and working professionals. The Institutional Customers segment provides online education services comprising digital library construction services to institutional customers, including colleges and universities, public libraries, telecom operators, and online video streaming providers. It also offers software and technology, education advisory, and human resources and related services, as well as invests in equity fund. The company was formerly known as Koolearn Technology Holding Limited and changed its name to East Buy Holding Limited in February 2023. The company was founded in 2005 and is headquartered in Beijing, China. East Buy Holding Limited operates as a subsidiary of New Oriental Education & Technology Group Inc.