Lincoln Educational Services (NASDAQ:LINC) versus Benesse (OTCMKTS:BSEFY) Critical Survey

Lincoln Educational Services (NASDAQ:LINCGet Free Report) and Benesse (OTCMKTS:BSEFYGet Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, risk, valuation, dividends and profitability.

Insider & Institutional Ownership

72.7% of Lincoln Educational Services shares are held by institutional investors. Comparatively, 0.0% of Benesse shares are held by institutional investors. 29.3% of Lincoln Educational Services shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Lincoln Educational Services 8.13% 10.59% 5.05%
Benesse N/A N/A N/A

Earnings and Valuation

This table compares Lincoln Educational Services and Benesse’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lincoln Educational Services $348.29 million 0.77 $12.63 million $0.94 9.05
Benesse N/A N/A N/A $55.01 0.24

Lincoln Educational Services has higher revenue and earnings than Benesse. Benesse 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Lincoln Educational Services and Benesse, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lincoln Educational Services 0 0 2 0 3.00
Benesse 0 1 0 0 2.00

Lincoln Educational Services presently has a consensus target price of $10.38, suggesting a potential upside of 21.92%. Given Lincoln Educational Services’ stronger consensus rating and higher probable upside, equities analysts plainly believe Lincoln Educational Services is more favorable than Benesse.

Summary

Lincoln Educational Services beats Benesse on 10 of the 11 factors compared between the two stocks.

About Lincoln Educational Services

(Get Free Report)

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 two segments: Transportation and Skilled Trades, and Healthcare and Other Professions. It offers associate's degree, and diploma and certificate programs in automotive technology; skilled trades programs, including electrical, heating and air conditioning repair, welding, computerized numerical control, and electrical and electronic systems technology; health science programs comprising s licensed practical nurse, registered nurse, dental assistant, medical assistant, medical administrative assistant, and claims examiner; hospitality service programs, such as culinary, therapeutic massage, cosmetology, and aesthetics; and information technology programs. The company operates schools under the Lincoln Technical Institute, Lincoln College of Technology, Lincoln Culinary Institute, Euphoria Institute of Beauty Arts and Sciences, and other brand names. Lincoln Educational Services Corporation was founded in 1946 and is based in Parsippany, New Jersey.

About Benesse

(Get Free Report)

Benesse Holdings, Inc. provides educational, and nursing care and childcare services in Japan and internationally. The company operates through three segments: Domestic Education Business; Nursing Care and Childcare Business; and Kids & Family Business. The company engages in the correspondence course business, school and teacher support business, cram school business, English language lessons for children business, and other businesses for preschool to high school students; and nursing care and childcare business, which include the operation of nursing homes for seniors comprising fee-based homes and elderly houses with care services, home help and daytime nursing care services, food delivery, and daycare and afterschool care services. It also offers information and products relating to pregnancy, childbirth, and parenting; lifestyle information and support everyday living through forums for communication with customers; and magazines, websites, and others to help enrich life with pets. The company was formerly known as Benesse Corporation and changed its name to Benesse Holdings, Inc. in 2009. Benesse Holdings, Inc. was incorporated in 1955 and is headquartered in Okayama, Japan.

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