New Oriental Education & Technology Group (NYSE:EDU – Get Free Report) and Makita (OTCMKTS:MKTAY – Get Free Report) are both mid-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.
Valuation & Earnings
This table compares New Oriental Education & Technology Group and Makita”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Oriental Education & Technology Group | $5.66 billion | 1.66 | $475.17 million | $2.96 | 20.45 |
| Makita | $5.17 billion | 1.69 | $524.13 million | $2.05 | 16.06 |
Makita has lower revenue, but higher earnings than New Oriental Education & Technology Group. Makita is trading at a lower price-to-earnings ratio than New Oriental Education & Technology Group, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
New Oriental Education & Technology Group has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500. Comparatively, Makita has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.
Profitability
This table compares New Oriental Education & Technology Group and Makita’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Oriental Education & Technology Group | 8.39% | 11.32% | 5.84% |
| Makita | 10.40% | 8.23% | 6.98% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for New Oriental Education & Technology Group and Makita, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Oriental Education & Technology Group | 0 | 2 | 3 | 1 | 2.83 |
| Makita | 1 | 0 | 0 | 0 | 1.00 |
New Oriental Education & Technology Group currently has a consensus price target of $63.17, suggesting a potential upside of 4.35%. Given New Oriental Education & Technology Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe New Oriental Education & Technology Group is more favorable than Makita.
Dividends
New Oriental Education & Technology Group pays an annual dividend of $1.16 per share and has a dividend yield of 1.9%. Makita pays an annual dividend of $1.18 per share and has a dividend yield of 3.6%. New Oriental Education & Technology Group pays out 39.2% of its earnings in the form of a dividend. Makita pays out 57.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Summary
New Oriental Education & Technology Group beats Makita on 9 of the 15 factors compared between the two stocks.
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.
About Makita
Makita Corporation engages in the manufacture and sale of electric power tools, pneumatic tools, and gardening and household equipment in Japan, Europe, North America, Asia, Australia, Brazil, and the United Arab Emirates. It offers cordless, drilling/fastening, impact drilling/demolition, grinding/sanding, sawing, planning/routering, pneumatic, outdoor power, and dust extraction/other equipment, as well as accessories; and cutting equipment for new materials, masonry, and metals. The company was formerly known as Makita Electric Works, Ltd. and changed its name to Makita Corporation in April 1991. Makita Corporation was founded in 1915 and is headquartered in Anjo, Japan.
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