Laureate Education (NASDAQ:LAUR) and Legacy Education Alliance (OTCMKTS:LEAI) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Laureate Education 28.57% -0.85% -0.28%
Legacy Education Alliance -7.79% N/A -28.49%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Laureate Education $3.35 billion 1.10 $370.07 million ($0.03) -546.00
Legacy Education Alliance $93.41 million 0.03 -$9.96 million N/A N/A

Laureate Education has higher revenue and earnings than Legacy Education Alliance.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Laureate Education and Legacy Education Alliance, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Laureate Education 0 0 5 0 3.00
Legacy Education Alliance 0 0 0 0 N/A

Laureate Education presently has a consensus price target of $22.20, suggesting a potential upside of 35.53%. Given Laureate Education’s higher probable upside, equities analysts clearly believe Laureate Education is more favorable than Legacy Education Alliance.

Risk and Volatility

Laureate Education has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500. Comparatively, Legacy Education Alliance has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500.

Institutional and Insider Ownership

50.4% of Laureate Education shares are held by institutional investors. 3.0% of Laureate Education shares are held by insiders. Comparatively, 28.0% of Legacy Education Alliance shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Laureate Education beats Legacy Education Alliance on 8 of the 11 factors compared between the two stocks.

Laureate Education Company Profile

Laureate Education, Inc., together with its subsidiaries, provides higher education programs and services to students through a network of universities and higher education institutions. It operates through five segments: Brazil, Mexico, Andean, Rest of World, and Online & Partnerships. The company offers a range of undergraduate and graduate degree programs primarily in the areas of business and management, medicine and health sciences, and engineering and information technology through campus-based, online, and hybrid programs. It also operates online institutions that offer professional degree programs primarily for the working adults with undergraduate and graduate degree programs. The company was formerly known as Sylvan Learning Systems, Inc. and changed its name to Laureate Education, Inc. in May 2004. The company was founded in 1989 and is headquartered in Baltimore, Maryland.

Legacy Education Alliance Company Profile

Legacy Education Alliance, Inc. provides educational training on the topics of personal finance, entrepreneurship, real estate, and financial markets investing strategies and techniques in North America, the United Kingdom, and internationally. The company's product offerings include Rich Dad Education, which is based on the teachings of Robert Kiyosaki; Rich Dad Stock Education program that teaches students how to become savvy investors; Making Money from Property with Martin Roberts, a property-based curriculum; and Brick Buy Brick program that introduces its students to the tools and strategies used by successful investors to make money work for them through real estate investing. It also provides Building Wealth program that trains students on how to build and preserve wealth, start or manage a business, and benefit through investing in property; Robbie Fowler Property Academy for teaching investment strategies; Women In Wealth program to empower women with a financial education; Perform in Property program that helps students to achieve level of performance and financial independence they desire; Teach Me to Trade program to learn the core concepts of trading in the financial markets; Trade Up Investor Education that helps students to enhance their knowledge of stock and options trading; and Elite training courses. The company offers its programs through various formats and channels, including free-preview workshops, basic training classes, symposiums, telephone mentoring, one-on-one mentoring, coaching, and e-learning. Legacy Education Alliance, Inc. is based in Cape Coral, Florida.

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