Analyzing Frontdoor (NASDAQ:FTDR) & Lincoln Educational Services (NASDAQ:LINC)

Frontdoor (NASDAQ:FTDR) and Lincoln Educational Services (NASDAQ:LINC) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Profitability

This table compares Frontdoor and Lincoln Educational Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Frontdoor	12.96%	124.74%	15.33%
Lincoln Educational Services	4.03%	13.61%	5.30%

Earnings and Valuation

This table compares Frontdoor and Lincoln Educational Services”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Frontdoor	$2.09 billion	3.16	$255.00 million	$4.00	24.46
Lincoln Educational Services	$518.24 million	1.40	$20.00 million	$0.75	31.35

Frontdoor has higher revenue and earnings than Lincoln Educational Services. Frontdoor is trading at a lower price-to-earnings ratio than Lincoln Educational Services, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Frontdoor has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, Lincoln Educational Services has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Institutional and Insider Ownership

72.2% of Lincoln Educational Services shares are owned by institutional investors. 1.6% of Frontdoor shares are owned by insiders. Comparatively, 12.8% of Lincoln Educational Services shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Frontdoor and Lincoln Educational Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Frontdoor	0	2	5	0	2.71
Lincoln Educational Services	0	2	4	0	2.67

Frontdoor currently has a consensus price target of $99.80, suggesting a potential upside of 1.98%. Lincoln Educational Services has a consensus price target of $48.00, suggesting a potential upside of 104.17%. Given Lincoln Educational Services’ higher possible upside, analysts plainly believe Lincoln Educational Services is more favorable than Frontdoor.

Summary

Frontdoor beats Lincoln Educational Services on 10 of the 14 factors compared between the two stocks.

About Frontdoor

Frontdoor, Inc. provides home service plans and repair solutions in the United States. Its plans help homeowners manage the cost of repairing or replacing covered home systems and appliances, such as heating and cooling equipment, plumbing, and kitchen appliances. The company serves customers through brands including American Home Shield, HSA Home Warranty, and OneGuard Home Warranties. It also connects customers with a network of independent service contractors and offers digital tools and support to help arrange home repairs.

About Lincoln Educational Services

Lincoln Educational Services Corporation operates career-focused postsecondary schools in the United States under brands including Lincoln Technical Institute and Lincoln College of Technology. Founded in 1946, the company provides students with career training through campus-based and online programs. Its programs include training in automotive technology, skilled trades such as HVAC and electrical work, health sciences, information technology, and other career fields. Offerings include diploma and degree programs designed to prepare students for jobs requiring specialized technical skills.