InvestorPlace.com recently published an article by Gregg Early discussing “5 Online Education Stocks That Can Expand Your Horizons.”
In it, Early states, “It’s pretty clear that the education system has been disrupted more by the pandemic than it has from online education programs. And this novel-coronavirus-induced dynamic has driven many investors toward online education stocks.”
Early goes on to discuss Chegg, Inc. (NYSE:CHGG), a company founded by Iowa State University students in 2000, writing that they “were trying to solve the paradox of getting a job without experience.” He explains that “over the years, the company went through various iterations but is now a powerful niche player in the textbook rental/sales and student services like study materials, tutors, etc…At the end of 2019, Chegg had 4 million subscribers, and most of the revenue came from student services…Chegg has an $8 billion market cap, so it’s no small cap with big dreams; it’s a real company making big moves. CHGG stock is up 87% year to date.”
Early also mentions K12 Inc (NYSE:LRN). He writes that “[t]he company was founded with money from major donors in the political, tech and business arenas and currently has 1 million students using its online curriculums…And now that Covid-19 is here, its mission has become even more attractive to many parents concerned about sending their kids back to schools and school boards looking for alternatives to develop hybrid re-openings that rotate populations in and out of schools…LRN stock has taken off — it’s up 83% in the past month alone, and 136% year to date. But it’s still trading at a market cap just below $2 billion, so it’s also a great takeover candidate compared to other online education stocks.”
The last company Early examines is New Oriental Education & Technology Group (NYSE:EDU). He states that “EDU started in 2001, and has grown its services and base since then. Now, it trades in the U.S. and has a market cap around $23 billion, making it a full-fledged large cap stock.” Early contemplates that “[t]he sheer fact that [China] has such a large population means it has huge potential. For example, it has slightly more people under the age of 24 as the entire population of the United States. It has 240 million under the age of 14… Simply put, there’s huge potential in China.”
In light of Early’s article, let us consider another education company: China Education Resources Inc. (“CER” or “the Company”). CER is perfectly poised to cater towards the intensified e-learning market demands which have arisen as a direct result of the COVID-19 pandemic. Based in Vancouver, Canada, CER is a publicly-listed ed-tech company (TSX-V:CHN and OTCQB:CHNUF) with leading technology in intelligent system and contents. It provides online/offlinelearning, training courses, and social media for teachers, students and education professionals; these are all increasingly integral aspects of education in the contemporary era. CER has 2 million kindergarten through twelfth-grade teachers registered through its web portal in China.
CER’s online education platform and services provide a vertically blended learning, teaching, research and management system for a student-teacher-school-parent community. CER’s products and services facilitate a significantly more efficient and enriched virtual educational experience for both teachers and students, most especially during a time when online education has become the backbone of many societies around the world. In combination with the circumstances and demands which have arisen as a result of the COVID-19 pandemic, we believe that China Education Resources’ numerous attributes will provide the Company with great long-term revenue potential.
CER (OTCQB: CHNUF) has 47,364,983 common shares outstanding. CHNUF generated US$9,390,402 revenue in 2019. CHNUF made US$978,466 net income in Q2 2020 (earnings per share $0.02).
China Education Resources Inc. (CHNUF) current price is $0.032 per share (P/S Ratio of 0.16, P/E Ratio of 1.6)
In comparison with CHNUF, the ratios of some larger education companies or organizations are as follows: *
|1. Chegg, Inc. (NYSE:CHGG)||P/S Ratio of 22||P/E Ratio of 5,375|
|2. New Oriental Education & Technology Group Inc. (NYSE:EDU)||P/S Ratio of 6.8||P/E Ratio of 58|
|3. GSX Techedu Inc. (NYSE:GSX)||P/S Ratio of 84||P/E Ratio of 700|
|4. TAL Education Group (NYSE:TAL)||P/S Ratio of 13||P/E Ratio N/A|
|5. Genius Brands International, Inc. (NASDAQ:GNUS)||P/S Ratio of 42||P/E Ratio N/A|
|6. Microsoft Corporation (NASDAQ:MSFT)||P/S Ratio of 11||P/E Ratio of 35|
|7. NVIDIA Corporation (NASDAQ:NVDA)||P/S Ratio of 27||P/E Ratio of 107|
|8. Zoom Video Communications, Inc. (NYSE:ZM)||P/S Ratio of 232||P/E Ratio of 654|
|9. DocuSign, Inc. (NASDAQ:DOCU)||P/S Ratio of 40||P/E Ratio N/A|
|10. Slack Technologies, Inc. (NASDAQ:WORK)||P/S Ratio of 19||P/E Ratio N/A|
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