Udemy (NASDAQ:UDMY – Get Free Report) and Wah Fu Education Group (NASDAQ:WAFU – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.
Insider and Institutional Ownership
79.5% of Udemy shares are held by institutional investors. 3.2% of Udemy shares are held by insiders. Comparatively, 72.0% of Wah Fu Education Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Udemy and Wah Fu Education Group, as provided by MarketBeat.
| 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 |
Valuation and Earnings
This table compares Udemy and Wah Fu Education Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Udemy | $786.57 million | 1.28 | -$85.29 million | ($0.57) | -11.93 |
| Wah Fu Education Group | $6.37 million | 1.00 | -$60,000.00 | N/A | N/A |
Wah Fu Education Group has lower revenue, but higher earnings than Udemy.
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 |
Volatility and Risk
Udemy has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500. Comparatively, Wah Fu Education Group has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.
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.
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