Franklin Covey (NYSE: FC) and Laureate Education (NASDAQ:LAUR) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations for Franklin Covey and Laureate Education, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Franklin Covey 0 2 1 0 2.33
Laureate Education 0 3 10 0 2.77

Franklin Covey presently has a consensus target price of $22.00, indicating a potential upside of 19.24%. Laureate Education has a consensus target price of $17.28, indicating a potential upside of 17.68%. Given Franklin Covey’s higher probable upside, analysts clearly believe Franklin Covey is more favorable than Laureate Education.

Profitability

This table compares Franklin Covey and Laureate Education’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Franklin Covey -2.15% -2.02% -0.99%
Laureate Education N/A N/A N/A

Insider & Institutional Ownership

52.0% of Franklin Covey shares are held by institutional investors. Comparatively, 20.8% of Laureate Education shares are held by institutional investors. 33.5% of Franklin Covey shares are held by insiders. Comparatively, 13.1% of Laureate Education shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Franklin Covey and Laureate Education’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Franklin Covey $190.57 million 1.34 $7.17 million ($0.31) -59.51
Laureate Education $4.24 billion 0.12 $648.36 million N/A N/A

Laureate Education has higher revenue and earnings than Franklin Covey.

Summary

Laureate Education beats Franklin Covey on 7 of the 11 factors compared between the two stocks.

Franklin Covey Company Profile

Franklin Covey Co. is a global company specializing in performance improvement. The Company’s segments are Direct Offices, Strategic Markets, Education practice and International Licensees. The Direct Offices segment consists of its geographic sales offices that serve the United States and Canada, its international sales offices located in Japan, the United Kingdom and Australia, and its public programs group. The Strategic Markets segment includes its government services office, the Sales Performance practice, the Customer Loyalty practice, and a new Global 50 group, which is specifically focused on sales to large, multi-national organizations. The Education practice segment consists of its domestic and international Education practice operations, which are centered on sales to educational institutions, such as elementary schools, high schools, and colleges and universities. The International Licensees segment consists of its international licensees’ royalty revenues.

Laureate Education Company Profile

Laureate Education, Inc. operates a network of degree-granting higher education institution. The Company operates in four segments: Latin America (LatAm); Europe; Asia, Middle East and Africa (AMEA), and Global Products and Services (GPS). The Company’s network includes approximately 70 institutions in over 25 countries on over 200 campuses, which the Company collectively refer to as the Laureate International Universities network. The Laureate International Universities network enables the Company to educate its students locally, while connecting them to an international community with a global perspective. The Company’s educational institutions offer a diverse range of academic programs, at the undergraduate and graduate level, including Business and Management; Medical and Health Sciences; Engineering and Information Technology; Architecture, Art and Design; Education; Law and Legal Studies; Communications, and Hospitality Management.

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