Lincoln Educational Services (NASDAQ:LINC) and Scientific Learning (OTCMKTS:SCIL) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.
Risk & Volatility
Lincoln Educational Services has a beta of 2.1, suggesting that its share price is 110% more volatile than the S&P 500. Comparatively, Scientific Learning has a beta of -1.23, suggesting that its share price is 223% less volatile than the S&P 500.
This table compares Lincoln Educational Services and Scientific Learning’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lincoln Educational Services||$261.85 million||0.25||-$11.48 million||($0.48)||-5.50|
|Scientific Learning||$16.40 million||0.67||$230,000.00||N/A||N/A|
Scientific Learning has lower revenue, but higher earnings than Lincoln Educational Services.
Insider and Institutional Ownership
62.8% of Lincoln Educational Services shares are held by institutional investors. 6.1% of Lincoln Educational Services shares are held by insiders. Comparatively, 16.1% of Scientific Learning 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.
This table compares Lincoln Educational Services and Scientific Learning’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lincoln Educational Services||-1.49%||-9.98%||-3.03%|
This is a summary of current recommendations and price targets for Lincoln Educational Services and Scientific Learning, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lincoln Educational Services||0||0||1||0||3.00|
Lincoln Educational Services currently has a consensus target price of $3.50, indicating a potential upside of 32.58%. Given Lincoln Educational Services’ higher possible upside, equities research analysts plainly believe Lincoln Educational Services is more favorable than Scientific Learning.
Lincoln Educational Services beats Scientific Learning on 7 of the 11 factors compared between the two stocks.
About Lincoln Educational Services
Lincoln Educational Services Corporation, together with its subsidiaries, provides various career-oriented post-secondary education services to high school graduates and working adults in the United States. The company operates in three segments: Transportation and Skilled Trades; Healthcare and Other Professions; and Transitional. It offers bachelor's degree, associate's degree, and diploma and certificate programs in automotive technology, skilled trades, healthcare services, hospitality services, and business and information technology areas. The company operates 23 schools in 14 states under the Lincoln Technical Institute, Lincoln College of Technology, Lincoln College of New England, Lincoln Culinary Institute, Euphoria Institute of Beauty Arts and Sciences, and associated brand names. Lincoln Educational Services Corporation was founded in 1946 and is based in West Orange, New Jersey.
About Scientific Learning
Scientific Learning Corporation, an education company, develops, distributes, and licenses technology that accelerates learning by enhancing the processing efficiency of the brain. Its flagship Fast ForWord, a Web-based product, comprises Fast ForWord Language for elementary learners and Fast ForWord Literacy for adolescent learners that build foundational reading and language skills to help districts move below grade level learners to learn in the general classroom, and Fast ForWord Reading, which builds learning capacity through developing cognitive skills using exercises focusing on phonemic awareness, phonics and decoding, spelling, vocabulary, fluency, and comprehension. The company also provides Reading Assistant that offers a one-on-one reading tutor for learners; ResultsNow!, an online hosting and support solution for its Fast ForWord and Reading Assistant products; and BrainPro services targeted at learners who are below grade level. In addition, it offers on-site product training, technical installation, implementation management, consulting, and Web-based synchronous and asynchronous professional development services; and software technical update releases, as well as extensive telephone, email, and chat support services. The company offers learning solutions primarily to educational institutions, speech and language clinics, learning centers, and parents. Scientific Learning Corporation was founded in 1995 and is headquartered in Oakland, California.
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