Critical Survey: E-Home Household Service (NASDAQ:EJH) vs. New Oriental Education & Technology Group (NYSE:EDU)

E-Home Household Service (NASDAQ:EJH) and New Oriental Education & Technology Group (NYSE:EDU) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Risk and Volatility

E-Home Household Service has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, New Oriental Education & Technology Group has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500.

Institutional and Insider Ownership

37.3% of E-Home Household Service shares are owned by institutional investors. 10.7% of E-Home Household Service shares are owned by company insiders. Comparatively, 15.5% of New Oriental Education & Technology Group shares are owned by company 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.

Profitability

This table compares E-Home Household Service and New Oriental Education & Technology Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
E-Home Household Service	N/A	N/A	N/A
New Oriental Education & Technology Group	8.39%	11.32%	5.84%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for E-Home Household Service and New Oriental Education & Technology Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
E-Home Household Service	1	0	0	0	1.00
New Oriental Education & Technology Group	0	2	5	1	2.88

New Oriental Education & Technology Group has a consensus price target of $64.54, suggesting a potential upside of 9.60%. Given New Oriental Education & Technology Group’s stronger consensus rating and higher probable upside, analysts plainly believe New Oriental Education & Technology Group is more favorable than E-Home Household Service.

Valuation & Earnings

This table compares E-Home Household Service and New Oriental Education & Technology Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
E-Home Household Service	$49.40 million	0.05	-$980,000.00	N/A	N/A
New Oriental Education & Technology Group	$5.66 billion	1.64	$371.72 million	$2.96	19.89

New Oriental Education & Technology Group has higher revenue and earnings than E-Home Household Service.

Summary

New Oriental Education & Technology Group beats E-Home Household Service on 11 of the 13 factors compared between the two stocks.

About E-Home Household Service

E-Home Household Service Holdings Limited, together with its subsidiaries, engages in the operation of household services in the People's Republic of China. The company operates through five segments: Installation and Maintenance, Housekeeping Services, Senior Care Services, Sales of Pharmaceutical Products, and Educational Consulting Services. It offers technical home installation and repair, and maintenance and other after sale services; housecleaning, nanny service, maternity matron, and personnel staffing; and heart rate test, daily step count, location and track record, call for help by WeChat or phone, and other care services for senior customers. The company provides its services through an online platform, as well as offline channels. Its customers primarily include individuals and families. E-Home Household Service Holdings Limited was founded in 2014 and is headquartered in Fuzhou, the People's Republic of China.

About New Oriental Education & Technology Group

New Oriental Education & Technology Group, Inc. is a holding company, which engages in the provision of private educational services. It operates through the following segments: Educational Services and Test Preparation Courses, Private Label Products and Livestreaming E-Commerce, Overseas Study Consulting Services, and Educational Materials and Distribution. The company was founded by Min Hong Yu and Yong Qiang Qian on November 16, 1993, and is headquartered in Beijing, China.