Lincoln Educational Services Corporation (NASDAQ: LINC) and American Public Education (NASDAQ:APEI) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.
Risk & Volatility
Lincoln Educational Services Corporation has a beta of 2.77, meaning that its stock price is 177% more volatile than the S&P 500. Comparatively, American Public Education has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.
61.5% of Lincoln Educational Services Corporation shares are owned by institutional investors. Comparatively, 93.6% of American Public Education shares are owned by institutional investors. 6.1% of Lincoln Educational Services Corporation shares are owned by insiders. Comparatively, 3.6% of American Public Education shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Lincoln Educational Services Corporation and American Public Education’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lincoln Educational Services Corporation||$185.33 million||0.42||$6.13 million||($1.55)||-2.02|
|American Public Education||$300.31 million||0.98||$56.56 million||$0.95||19.05|
American Public 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 American Public Education, indicating that it is currently the more affordable of the two stocks.
This table compares Lincoln Educational Services Corporation and American Public Education’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lincoln Educational Services Corporation||-16.19%||-24.26%||-8.20%|
|American Public Education||5.18%||7.87%||6.55%|
This is a breakdown of current ratings and recommmendations for Lincoln Educational Services Corporation and American Public Education, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lincoln Educational Services Corporation||0||0||0||0||N/A|
|American Public Education||0||1||0||0||2.00|
American Public Education has a consensus price target of $19.00, suggesting a potential upside of 4.97%. Given American Public Education’s higher possible upside, analysts plainly believe American Public Education is more favorable than Lincoln Educational Services Corporation.
American Public Education beats Lincoln Educational Services Corporation on 9 of the 11 factors compared between the two stocks.
Lincoln Educational Services Corporation Company Profile
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.
American Public Education Company Profile
American Public Education, Inc. provides online and on-campus postsecondary education. The Company provides postsecondary education through its subsidiary institutions, American Public University System, Inc. (APUS) and Hondros College of Nursing (HCON). It operates through two segments: American Public Education Segment, which consists of the operational activities of APUS, other corporate activities, and minority investments, and Hondros College of Nursing Segment, which consists of the operational activities of HCON. APUS provides online postsecondary education to approximately 88,700 adult learners serving the needs of the military and public safety communities as of December 31, 2016. As of December 31, 2016, HCON provided nursing education to approximately 1,300 students across five campuses in the State of Ohio, as well as online. It offers a Diploma in Practical Nursing and an Associate Degree in Nursing. As of December 31, 2016, the Company had approximately 90,000 students.
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