Critical Survey: Wah Fu Education Group (NASDAQ:WAFU) versus Udemy (NASDAQ:UDMY)

Udemy (NASDAQ:UDMY) and Wah Fu Education Group (NASDAQ:WAFU) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Institutional and Insider Ownership

79.5% of Udemy shares are owned by institutional investors. 3.2% of Udemy shares are owned by company insiders. Comparatively, 72.0% of Wah Fu Education Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Udemy has a beta of 1.81, meaning that its stock price is 81% more volatile than the S&P 500. Comparatively, Wah Fu Education Group has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Valuation & Earnings

This table compares Udemy and Wah Fu Education Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Udemy	$786.57 million	1.13	-$85.29 million	($0.57)	-10.60
Wah Fu Education Group	$6.37 million	1.01	-$60,000.00	N/A	N/A

Wah Fu Education Group has lower revenue, but higher earnings than Udemy.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Udemy and Wah Fu Education Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Udemy	1	4	7	0	2.50
Wah Fu Education Group	0	0	0	0	0.00

Udemy presently has a consensus price target of $10.68, suggesting a potential upside of 76.85%. Given Udemy’s stronger consensus rating and higher probable upside, analysts plainly believe Udemy is more favorable than Wah Fu Education Group.

Profitability

This table compares Udemy and Wah Fu Education Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Udemy	-10.84%	-27.93%	-10.14%
Wah Fu Education Group	N/A	N/A	N/A

Summary

Udemy beats Wah Fu Education Group on 7 of the 12 factors compared between the two stocks.

About Udemy

Udemy, Inc., a learning company, that operates a marketplace platform for learning skills in the United States and internationally. The company offers skill acquisition, development, and validation courses for organizations and individuals, through direct-to-consumer or Udemy Business offerings in various languages. Its courses provide learning objectives, such as reskilling or upskilling in technology, business, soft skills, and personal development, as well as learners receive access to interactive learning tools comprising quizzes, exercises, and instructor questions-and-answers. The company was incorporated in 2010 and is headquartered in San Francisco, California.

About Wah Fu Education Group

Wah Fu Education Group Limited, through its subsidiaries, provides online exam preparation services and related technology solutions in the People's Republic of China. The company operates through two segments: Online Education Services, and Technological Development and Operation Services. The Online Education Services segment offers online education platforms to institutions, such as universities and training institutions, and online course development service companies. This segment provides self-study examination, continuing education, and non-diploma training platforms that allow students to enroll in courses for college credit; vocational education 1+X and higher vocational enrollment expansion teaching and educational administration platform; Huafu e-school system and paperless examination platform; and online training and examination preparation services directly to students. The Technological Development and Operation Services segment develops and maintains online education platforms and online courses for its clients, including universities and government agencies, as well as private clients, such as publishers; and provides consulting, maintenance, and updating services related to online education programs. In addition, the company produces online training course materials. Wah Fu Education Group Limited was founded in 1999 and is headquartered in Beijing, the People's Republic of China.