Analyzing The Advisory Board (ABCO) & Lifelock (LOCK)

Lifelock (NYSE: LOCK) and The Advisory Board (NASDAQ:ABCO) are both mid-cap industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Profitability

This table compares Lifelock and The Advisory Board’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lifelock 8.46% 24.53% 10.96%
The Advisory Board 13.65% 12.69% 3.30%

Valuation and Earnings

This table compares Lifelock and The Advisory Board’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Lifelock N/A N/A N/A $0.19 N/A
The Advisory Board $803.42 million 2.72 $91.23 million $2.69 19.94

The Advisory Board has higher revenue and earnings than Lifelock. Lifelock is trading at a lower price-to-earnings ratio than The Advisory Board, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

88.8% of Lifelock shares are owned by institutional investors. Comparatively, 99.3% of The Advisory Board shares are owned by institutional investors. 13.9% of Lifelock shares are owned by insiders. Comparatively, 4.7% of The Advisory Board shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Lifelock and The Advisory Board, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lifelock 1 3 0 0 1.75
The Advisory Board 1 11 3 0 2.13

Lifelock currently has a consensus target price of $24.00, indicating a potential upside of Infinity. The Advisory Board has a consensus target price of $51.44, indicating a potential downside of 4.08%. Given Lifelock’s higher probable upside, analysts plainly believe Lifelock is more favorable than The Advisory Board.

Summary

The Advisory Board beats Lifelock on 6 of the 10 factors compared between the two stocks.

Lifelock Company Profile

LifeLock, Inc. provides proactive identity theft protection services for consumers and consumer risk management services for enterprises. The Company monitors certain identity-related events, such as new account openings and credit-related applications. It operates in two segments: consumer segment and an enterprise segment. The Company’s LifeLock ecosystem combines data repositories of personally identifiable information and consumer transactions, predictive analytics and a technology platform. It applies predictive analytics to the data in its repositories to provide its members and enterprise customers’ actionable intelligence that helps protect against identity theft and identity fraud. It offers its consumer services on a monthly or annual subscription basis. It provides consumer risk management services, including delivering its on-demand identity risk, identity-authentication and credit information about consumers to its enterprise customers in the daily transaction flows.

The Advisory Board Company Profile

The Advisory Board Company is a provider of software and solutions to the healthcare and higher education industries. The Company offers subscription-based membership programs, software and data-enabled services. All of its programs are rooted in best practices and extends across four areas, including Best practices research, Technology, Data-enabled services and Consulting services. The best practices research and insight programs provide the foundation for all of its other programs. The Company offers technology analytics programs anchored by cloud-based software applications that surface performance improvement opportunities to accelerate progress. Through its consulting services, the Company provides on-the-ground support for performance improvement initiatives, as well as best practice professional management of areas of the hospital or medical group. The Company’s data-enabled services are primarily focused in the area of enrollment management.

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