Critical Survey: Lincoln Educational Services Corporation (NASDAQ:LINC) & Nord Anglia Education (NORD)
Lincoln Educational Services Corporation (NASDAQ: LINC) and Nord Anglia Education (NYSE:NORD) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitabiliy and dividends.
Earnings & Valuation
This table compares Lincoln Educational Services Corporation and Nord Anglia Education’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lincoln Educational Services Corporation||$191.55 million||0.39||$9.53 million||($1.40)||-2.15|
|Nord Anglia Education||$907.80 million||3.77||$173.60 million||$0.57||57.69|
Nord Anglia Education has higher revenue and earnings than Lincoln Educational Services Corporation. Lincoln Educational Services Corporation is trading at a lower price-to-earnings ratio than Nord Anglia Education, indicating that it is currently the more affordable of the two stocks.
This table compares Lincoln Educational Services Corporation and Nord Anglia Education’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lincoln Educational Services Corporation||-16.00%||-14.19%||-5.19%|
|Nord Anglia Education||6.71%||22.11%||3.06%|
Institutional & Insider Ownership
62.6% of Lincoln Educational Services Corporation shares are owned by institutional investors. Comparatively, 34.8% of Nord Anglia Education shares are owned by institutional investors. 6.1% of Lincoln Educational Services Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a summary of recent recommendations for Lincoln Educational Services Corporation and Nord Anglia Education, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lincoln Educational Services Corporation||0||0||0||0||N/A|
|Nord Anglia Education||1||5||2||0||2.13|
Nord Anglia Education has a consensus price target of $30.50, indicating a potential downside of 7.24%. Given Nord Anglia Education’s higher probable upside, analysts clearly believe Nord Anglia Education is more favorable than Lincoln Educational Services Corporation.
Risk and Volatility
Lincoln Educational Services Corporation has a beta of 2.77, indicating that its stock price is 177% more volatile than the S&P 500. Comparatively, Nord Anglia Education has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.
Nord Anglia Education beats Lincoln Educational Services Corporation on 9 of the 12 factors compared between the two stocks.
About Lincoln Educational Services Corporation
Lincoln Educational Services Corporation is a provider of post-secondary education. The Company operates in two segments: Transportation and Skilled Trades, and Transitional. The Transportation and Skilled Trades segment offers academic programs in the disciplines of transportation and skilled trades (automotive, diesel, heating, ventilation and air conditioning (HVAC), welding and manufacturing). The Transitional segment includes operations that are being phased out and consists of its campus that is being taught out. It offers programs in automotive technology, skilled trades, which include HVAC, welding and computerized numerical control and electronic systems technology; healthcare services, which include nursing, dental assistant and pharmacy technician; hospitality services, which include culinary, therapeutic massage, cosmetology and aesthetics, and business and information technology, which includes information technology and criminal justice programs.
About Nord Anglia Education
Nord Anglia Education, Inc. is an operator of international schools. As of August 31, 2016, the Company taught over 37,000 students, from kindergarten through the end of secondary school (K-12), at its 43 schools in China, Europe, the Middle East, South East Asia and North America. The Company’s segments include China, Europe, Middle East (ME), Southeast Asia (SEA), North America and Other. The China segment includes its activities in the People’s Republic of China and the Hong Kong Special Administrative Region. The Europe segment includes the Company’s activities in Switzerland, Slovakia, Hungary, the Czech Republic, Spain and Poland. The ME segment includes the Company’s activities in the United Arab Emirates and Qatar. The SEA segment includes the Company’s activities in Thailand, Singapore, Cambodia and Vietnam. The North America segment includes the Company’s activities in the United States and Mexico. The Other segment includes the Learning Services division.
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