Financial Comparison: Lincoln Educational Services Corporation (LINC) & Bridgepoint Education (BPI)
Lincoln Educational Services Corporation (NASDAQ: LINC) and Bridgepoint Education (NYSE:BPI) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.
Earnings & Valuation
This table compares Lincoln Educational Services Corporation and Bridgepoint Education’s top-line 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||0.31||$6.13 million||($1.55)||-1.50|
|Bridgepoint Education||$510.19 million||0.57||$33.22 million||($0.06)||-165.97|
Bridgepoint Education has higher revenue and earnings than Lincoln Educational Services Corporation. Bridgepoint Education is trading at a lower price-to-earnings ratio than Lincoln Educational Services Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Lincoln Educational Services Corporation and Bridgepoint 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%|
Institutional & Insider Ownership
62.1% of Lincoln Educational Services Corporation shares are held by institutional investors. Comparatively, 92.8% of Bridgepoint Education shares are held by institutional investors. 6.1% of Lincoln Educational Services Corporation shares are held by insiders. Comparatively, 41.5% of Bridgepoint Education shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Lincoln Educational Services Corporation has a beta of 2.8, suggesting that its share price is 180% more volatile than the S&P 500. Comparatively, Bridgepoint Education has a beta of 2.19, suggesting that its share price is 119% more volatile than the S&P 500.
This is a summary of current ratings and target prices for Lincoln Educational Services Corporation and Bridgepoint Education, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lincoln Educational Services Corporation||0||0||0||0||N/A|
Bridgepoint Education has a consensus target price of $14.00, suggesting a potential upside of 40.56%. Given Bridgepoint Education’s higher possible upside, analysts clearly believe Bridgepoint Education is more favorable than Lincoln Educational Services Corporation.
Bridgepoint Education beats Lincoln Educational Services Corporation on 10 of the 11 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 Bridgepoint Education
Bridgepoint Education, Inc. (Bridgepoint) is a provider of postsecondary education services. The Company’s academic institutions include Ashford University and University of the Rockies. Bridgepoint’s institutions conduct ongoing faculty and student assessment processes, and provide a range of student services. It offers Constellation, its learning platform, Waypoint Outcomes, its assessment software, and its mobile application technology. As of December 31, 2016, its institutions offered over 1,200 courses and over 80 degree programs. Ashford University offers associate’s, bachelor’s and master’s degree programs online. Ashford University comprises four colleges: the Forbes School of Business and Technology, the College of Education, the College of Health, Human Services and Science, and the College of Liberal Arts. University of the Rockies is a graduate institution that offers master’s and doctoral degree programs in the social and behavioral sciences.
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