Critical Comparison: Lincoln Educational Services (NASDAQ:LINC) vs. Vasta Platform (NASDAQ:VSTA)

Lincoln Educational Services (NASDAQ:LINC) and Vasta Platform (NASDAQ:VSTA) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.

Profitability

This table compares Lincoln Educational Services and Vasta Platform’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lincoln Educational Services 4.12% 27.42% 6.15%
Vasta Platform N/A N/A N/A

Earnings & Valuation

This table compares Lincoln Educational Services and Vasta Platform’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lincoln Educational Services $273.34 million 0.72 $2.02 million $0.08 91.63
Vasta Platform N/A N/A N/A N/A N/A

Lincoln Educational Services has higher revenue and earnings than Vasta Platform.

Insider & Institutional Ownership

62.7% of Lincoln Educational Services shares are held by institutional investors. 25.0% of Lincoln Educational Services shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Lincoln Educational Services and Vasta Platform, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lincoln Educational Services 0 0 4 0 3.00
Vasta Platform 0 1 5 0 2.83

Lincoln Educational Services currently has a consensus price target of $9.50, suggesting a potential upside of 29.60%. Vasta Platform has a consensus price target of $16.40, suggesting a potential upside of 99.27%. Given Vasta Platform’s higher probable upside, analysts clearly believe Vasta Platform is more favorable than Lincoln Educational Services.

Summary

Lincoln Educational Services beats Vasta Platform on 7 of the 9 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 through three segments: Transportation and Skilled Trades, Healthcare and Other Professions, and Transitional. It offers associate's degree, and diploma and certificate programs in automotive technology; skilled trades, including welding, computerized numerical control, and electrical and electronic systems technology, as well as heating, ventilating, and air conditioning programs; healthcare services comprising nursing, dental and medical assistant, claim examiner, medical administrative assistant, etc.; hospitality services, such as culinary, therapeutic massage, cosmetology, and aesthetics; and information technology. The company operates 22 schools in 14 states under the Lincoln Technical Institute, Lincoln College of Technology, Lincoln Culinary Institute, and Euphoria Institute of Beauty Arts and Sciences, as well as associated brand names. As of December 31, 2020, it had 12,217 students enrolled at 22 campuses. The company was founded in 1946 and is based in West Orange, New Jersey.

About Vasta Platform

Vasta Platform Limited, an education company, provides educational and digital solutions to private schools operating in the K-12 educational sector in Brazil. The company operates in two segments, Content & EdTech Platform and Digital Platform. The Content & EdTech Platform segment offers core and complementary educational content solutions through digital and printed content, including textbooks, learning systems, and other complimentary educational services. The Digital Platform segment provides physical and digital e-commerce platform, and other digital services. As of March 31, 2020, its network of business-to-business customers consisted of 4,167 partner schools; and enrolled students included 1,311 thousand. The company also sells textbooks, as well as operates an e-commerce channel for the sale of educational content, such as textbooks, school materials, stationery, and others; and offers university admission preparatory exam courses. It serves various stakeholders, including students, parents, educators, administrators, and private school owners. The company was founded in 1966 and is based in São Paulo, Brazil.

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