Reviewing Lincoln Educational Services Corporation (LINC) and Nord Anglia Education (NORD)

Lincoln Educational Services Corporation (NASDAQ: LINC) and Nord Anglia Education (NYSE:NORD) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Institutional and Insider Ownership

62.1% of Lincoln Educational Services Corporation shares are owned by institutional investors. Comparatively, 30.8% of Nord Anglia Education shares are owned by institutional investors. 6.1% of Lincoln Educational Services Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Lincoln Educational Services Corporation and Nord Anglia Education, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lincoln Educational Services Corporation 0 0 0 0 N/A
Nord Anglia Education 1 5 2 0 2.13

Nord Anglia Education has a consensus target price of $30.50, indicating a potential downside of 6.36%. Given Nord Anglia Education’s higher probable upside, analysts clearly believe Nord Anglia Education is more favorable than Lincoln Educational Services Corporation.

Earnings & Valuation

This table compares Lincoln Educational Services Corporation and Nord Anglia Education’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Lincoln Educational Services Corporation $185.33 million 0.34 $6.13 million ($1.55) -1.66
Nord Anglia Education $907.80 million 3.73 $173.60 million $0.57 57.14

Nord Anglia 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 Nord Anglia Education, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Lincoln Educational Services Corporation has a beta of 2.82, meaning that its share price is 182% more volatile than the S&P 500. Comparatively, Nord Anglia Education has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Profitability

This table compares Lincoln Educational Services Corporation and Nord Anglia 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%
Nord Anglia Education 4.26% 12.59% 2.09%

Summary

Nord Anglia Education beats Lincoln Educational Services Corporation on 9 of the 12 factors compared between the two stocks.

About Lincoln Educational Services Corporation

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.

About Nord Anglia Education

Nord Anglia Education, Inc. is an operator of international schools. As of August 31, 2016, the Company taught over 37,000 students, from kindergarten through the end of secondary school (K-12), at its 43 schools in China, Europe, the Middle East, South East Asia and North America. The Company’s segments include China, Europe, Middle East (ME), Southeast Asia (SEA), North America and Other. The China segment includes its activities in the People’s Republic of China and the Hong Kong Special Administrative Region. The Europe segment includes the Company’s activities in Switzerland, Slovakia, Hungary, the Czech Republic, Spain and Poland. The ME segment includes the Company’s activities in the United Arab Emirates and Qatar. The SEA segment includes the Company’s activities in Thailand, Singapore, Cambodia and Vietnam. The North America segment includes the Company’s activities in the United States and Mexico. The Other segment includes the Learning Services division.

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