Lincoln Educational Services (NASDAQ:LINC) and New Oriental Education & Tech Grp (NYSE:EDU) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.
Risk and Volatility
Lincoln Educational Services has a beta of 2.28, indicating that its stock price is 128% more volatile than the S&P 500. Comparatively, New Oriental Education & Tech Grp has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.
This is a breakdown of recent ratings for Lincoln Educational Services and New Oriental Education & Tech Grp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lincoln Educational Services||0||0||1||0||3.00|
|New Oriental Education & Tech Grp||0||1||5||0||2.83|
Lincoln Educational Services presently has a consensus target price of $3.50, indicating a potential upside of 63.55%. New Oriental Education & Tech Grp has a consensus target price of $98.50, indicating a potential upside of 73.23%. Given New Oriental Education & Tech Grp’s higher possible upside, analysts clearly believe New Oriental Education & Tech Grp is more favorable than Lincoln Educational Services.
Earnings and Valuation
This table compares Lincoln Educational Services and New Oriental Education & Tech Grp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lincoln Educational Services||$261.85 million||0.20||-$11.48 million||($0.48)||-4.46|
|New Oriental Education & Tech Grp||$2.45 billion||3.31||$296.13 million||$1.87||30.41|
New Oriental Education & Tech Grp has higher revenue and earnings than Lincoln Educational Services. Lincoln Educational Services is trading at a lower price-to-earnings ratio than New Oriental Education & Tech Grp, indicating that it is currently the more affordable of the two stocks.
This table compares Lincoln Educational Services and New Oriental Education & Tech Grp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lincoln Educational Services||-1.85%||-12.10%||-3.77%|
|New Oriental Education & Tech Grp||9.86%||15.47%||8.27%|
Insider & Institutional Ownership
63.0% of Lincoln Educational Services shares are owned by institutional investors. Comparatively, 88.7% of New Oriental Education & Tech Grp shares are owned by institutional investors. 6.1% of Lincoln Educational Services shares are owned by insiders. Comparatively, 15.5% of New Oriental Education & Tech Grp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
New Oriental Education & Tech Grp beats Lincoln Educational Services on 12 of the 14 factors compared between the two stocks.
About Lincoln Educational Services
Lincoln Educational Services Corporation, together with its subsidiaries, provides various career-oriented post-secondary education services to high school graduates and working adults in the United States. The company operates in three segments: Transportation and Skilled Trades; Healthcare and Other Professions; and Transitional. It offers bachelor's degree, associate's degree, and diploma and certificate programs in automotive technology, skilled trades, healthcare services, hospitality services, and business and information technology areas. The company operates 23 schools in 14 states under the Lincoln Technical Institute, Lincoln College of Technology, Lincoln College of New England, Lincoln Culinary Institute, Euphoria Institute of Beauty Arts and Sciences, and associated brand names. Lincoln Educational Services Corporation was founded in 1946 and is based in West Orange, New Jersey.
About New Oriental Education & Tech Grp
New Oriental Education & Technology Group Inc. provides private educational services under the New Oriental brand in the People's Republic of China. The company operates through Language Training and Test Preparation, Primary and Secondary School Education, Online Education, Content Development and Distribution, Pre-School Education, Overseas Study Consulting Services, and Study Tour segments. It offers test preparation courses to students taking language and entrance exams used by educational institutions in the United States, the People's Republic of China, and the Commonwealth countries; and after-school tutoring courses for middle and high school students to achieve better scores on entrance exams for admission into high schools or higher education institutions, as well as for children to teach English. The company also provides language training courses consisting of English, as well as other foreign languages, such as German, Japanese, French, Korean, Italian, and Spanish; operates full-time private primary and secondary boarding school in Yangzhou seeking a full curriculum taught in Chinese and English; develops and edits educational materials for language training and test preparation comprising books, software, CD-ROMs, magazines, and other periodicals; and offers online education programs on its Websites koolearn.com and koo.cn. In addition, it offers overseas studies consulting; pre-school education; and a pilot program that permits third parties in small cities to provide its English and kindergarten programs, as well as overseas study tour services. As of May 31, 2017, the company offered educational programs, services, and products to students through a network of 77 schools, 855 learning centers, and 20 bookstores. The company was founded in 1993 and is headquartered in Beijing, the People's Republic of China.
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