Laureate Education (NASDAQ: LAUR) and K12 (NYSE:LRN) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Insider and Institutional Ownership

20.8% of Laureate Education shares are owned by institutional investors. Comparatively, 79.1% of K12 shares are owned by institutional investors. 13.1% of Laureate Education shares are owned by insiders. Comparatively, 18.3% of K12 shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Laureate Education and K12, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Laureate Education 0 3 10 0 2.77
K12 0 0 2 0 3.00

Laureate Education currently has a consensus target price of $17.28, suggesting a potential upside of 28.92%. K12 has a consensus target price of $18.50, suggesting a potential upside of 2.10%. Given Laureate Education’s higher possible upside, equities analysts plainly believe Laureate Education is more favorable than K12.

Valuation & Earnings

This table compares Laureate Education and K12’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Laureate Education $4.24 billion 0.11 $648.36 million N/A N/A
K12 $888.52 million 0.83 $35.91 million N/A N/A

Laureate Education has higher revenue and earnings than K12.

Profitability

This table compares Laureate Education and K12’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Laureate Education N/A N/A N/A
K12 0.05% 3.18% 2.40%

Summary

K12 beats Laureate Education on 8 of the 12 factors compared between the two stocks.

Laureate Education Company Profile

Laureate Education, Inc. provides higher education programs and services to students through an international network of licensed universities and higher education institutions (institutions). The Company’s programs are provided through institutions that are campus-based and Internet-based, or through electronically distributed educational programs (online). It offers its educational services through six segments: Brazil; Mexico; Andean and Iberian; Central America and United States (U.S.) Campuses; Online and Partnerships; and Europe, Middle East, Africa and Asia Pacific (EMEAA). Its institutions also offer an education that emphasizes professional-oriented fields of study with undergraduate and graduate degrees in a wide range of disciplines. As of June 30, 2017, the Company’s global network of 69 institutions comprised 57 institutions it owned or controlled, and an additional 12 institutions that it managed or with which it had other relationships.

K12 Company Profile

K12 Inc. (K12) is a technology-based education company. The Company offers curriculum, software systems and educational services designed to facilitate individualized learning for students in kindergarten through 12th grade (K-12). It provides a continuum of technology-based educational products and solutions to public school districts, public schools, virtual charter schools, private schools and families. The Company offers a set of products and services primarily to three lines of business, which include Managed Public School Programs, which consists of virtual and blended schools; Institutional business, which includes educational products and services sold to school districts, public schools and other educational institutions, and Private Pay Schools and Other, which includes private schools, including international, for which it charges student tuition and direct consumer sales. It sells individual online courses and supplemental educational products directly to families.

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