RISE Education Cayman (NASDAQ: REDU) and Lincoln Educational Services (NASDAQ:LINC) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Valuation & Earnings
This table compares RISE Education Cayman and Lincoln Educational Services’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|RISE Education Cayman||$104.87 million||8.96||$7.95 million||N/A||N/A|
|Lincoln Educational Services||$261.85 million||0.17||-$11.48 million||($0.49)||-3.78|
This table compares RISE Education Cayman and Lincoln Educational Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|RISE Education Cayman||N/A||N/A||N/A|
|Lincoln Educational Services||-4.39%||-28.91%||-8.96%|
This is a breakdown of current ratings and price targets for RISE Education Cayman and Lincoln Educational Services, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|RISE Education Cayman||0||0||1||0||3.00|
|Lincoln Educational Services||0||0||0||0||N/A|
RISE Education Cayman currently has a consensus target price of $15.50, indicating a potential downside of 9.25%. Given RISE Education Cayman’s higher possible upside, analysts clearly believe RISE Education Cayman is more favorable than Lincoln Educational Services.
Insider and Institutional Ownership
10.8% of RISE Education Cayman shares are held by institutional investors. Comparatively, 63.1% of Lincoln Educational Services shares are held by institutional investors. 6.1% of Lincoln Educational Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
RISE Education Cayman beats Lincoln Educational Services on 7 of the 10 factors compared between the two stocks.
RISE Education Cayman Company Profile
RISE Education Cayman Ltd is a holding company. The Company, through its subsidiaries, offers after-school English teaching and tutoring services to students aged three to 18. It operates in China’s junior English Language Training (ELT) market. Its offers three flagship courses, including Rise Start, Rise On and Rise Up, that are designed for students aged three to six, seven to twelve and 13 to 18, respectively. As of June 30, 2017, the Company had a network of 246 learning centers across 80 cities in China, among which 56 were self-owned centers and 190 centers were franchised learning centers. Its suite of products comprises both online and offline coursework. Its also offers a series of complementary products to students from both self-owned learning centers and franchised learning centers, including online products Can-Talk and Rise Library Online, and offline products Rise Camp, Rise Workshop and Rise Overseas Study Tour.
Lincoln Educational Services 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.
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