Lincoln Educational Services Corporation (NASDAQ: LINC) and TAL Education Group (NYSE:TAL) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
This table compares Lincoln Educational Services Corporation and TAL Education Group’s net margins, return on equity and return on assets.
Institutional and Insider Ownership
62.1% of Lincoln Educational Services Corporation shares are owned by institutional investors. Comparatively, 9.6% of TAL Education Group 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility and Risk
Lincoln Educational Services Corporation has a beta of 2.8, meaning that its share price is 180% more volatile than the S&P 500. Comparatively, TAL Education Group has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500.
Earnings and Valuation
This table compares Lincoln Educational Services Corporation and TAL Education Group’s revenue, earnings per share and valuation.
TAL Education Group has higher revenue and earnings than Lincoln Educational Services Corporation. Lincoln Educational Services Corporation is trading at a lower price-to-earnings ratio than TAL Education Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for Lincoln Educational Services Corporation and TAL Education Group, as reported by MarketBeat.com.
TAL Education Group has a consensus target price of $30.18, suggesting a potential upside of 8.85%. Given TAL Education Group’s higher possible upside, analysts clearly believe TAL Education Group is more favorable than Lincoln Educational Services Corporation.
TAL Education Group 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 TAL Education Group
TAL Education Group is a holding company for a group of companies engaged in provision of after-school tutoring programs for primary and secondary school students in the People’s Republic of China (the PRC). The Company is a K-12 after-school tutoring services provider in China. The Company’s Xueersi Peiyou small classes course consists of approximately four semesters, which include approximately two school semesters in Spring and Fall, and approximately two holiday semesters in summer and winter. It operates a Website, www.jzb.com, which is an online education platform in China. It offers personalized premium services under its Zhikang brand. It offers online courses through www.xueersi.com. Through www.xueersi.com, the Company offers online courses on mathematics, English, Chinese, physics, chemistry, biology and other subjects. It also offers select online courses through other Websites. The Company has over 10 call centers in Beijing, Shanghai, Tianjin, Guangzhou and Shenzhen.