Laureate Education (NASDAQ: LAUR) and Franklin Covey (NYSE:FC) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Profitability

This table compares Laureate Education and Franklin Covey’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Laureate Education N/A N/A N/A
Franklin Covey -2.15% -2.02% -0.99%

Institutional and Insider Ownership

20.8% of Laureate Education shares are held by institutional investors. Comparatively, 52.0% of Franklin Covey shares are held by institutional investors. 13.1% of Laureate Education shares are held by insiders. Comparatively, 33.5% of Franklin Covey shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Laureate Education and Franklin Covey’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Laureate Education $4.24 billion 0.13 $648.36 million N/A N/A
Franklin Covey $190.57 million 1.35 $7.17 million ($0.31) -59.68

Laureate Education has higher revenue and earnings than Franklin Covey.

Analyst Ratings

This is a summary of recent recommendations for Laureate Education and Franklin Covey, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Laureate Education 0 3 10 0 2.77
Franklin Covey 0 2 1 0 2.33

Laureate Education currently has a consensus target price of $17.28, suggesting a potential upside of 14.94%. Franklin Covey has a consensus target price of $22.00, suggesting a potential upside of 18.92%. Given Franklin Covey’s higher probable upside, analysts clearly believe Franklin Covey is more favorable than Laureate Education.

Summary

Laureate Education beats Franklin Covey on 7 of the 11 factors compared between the two stocks.

Laureate Education Company Profile

Laureate Education, Inc. operates a network of degree-granting higher education institution. The Company operates in four segments: Latin America (LatAm); Europe; Asia, Middle East and Africa (AMEA), and Global Products and Services (GPS). The Company’s network includes approximately 70 institutions in over 25 countries on over 200 campuses, which the Company collectively refer to as the Laureate International Universities network. The Laureate International Universities network enables the Company to educate its students locally, while connecting them to an international community with a global perspective. The Company’s educational institutions offer a diverse range of academic programs, at the undergraduate and graduate level, including Business and Management; Medical and Health Sciences; Engineering and Information Technology; Architecture, Art and Design; Education; Law and Legal Studies; Communications, and Hospitality Management.

Franklin Covey Company Profile

Franklin Covey Co. is a global company specializing in performance improvement. The Company’s segments are Direct Offices, Strategic Markets, Education practice and International Licensees. The Direct Offices segment consists of its geographic sales offices that serve the United States and Canada, its international sales offices located in Japan, the United Kingdom and Australia, and its public programs group. The Strategic Markets segment includes its government services office, the Sales Performance practice, the Customer Loyalty practice, and a new Global 50 group, which is specifically focused on sales to large, multi-national organizations. The Education practice segment consists of its domestic and international Education practice operations, which are centered on sales to educational institutions, such as elementary schools, high schools, and colleges and universities. The International Licensees segment consists of its international licensees’ royalty revenues.

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