Healthcare Services Group (NASDAQ:HCSG) vs. Legacy Education Alliance (OTCMKTS:LEAI) Head-To-Head Review

Legacy Education Alliance (OTCMKTS:LEAI) and Healthcare Services Group (NASDAQ:HCSG) are both small-cap business services 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.

Institutional & Insider Ownership

98.0% of Healthcare Services Group shares are held by institutional investors. 13.0% of Legacy Education Alliance shares are held by insiders. Comparatively, 2.6% of Healthcare Services Group 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.

Analyst Recommendations

This is a summary of current ratings and target prices for Legacy Education Alliance and Healthcare Services Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Legacy Education Alliance	0	0	0	0	0.00
Healthcare Services Group	0	4	3	0	2.43

Healthcare Services Group has a consensus target price of $19.40, suggesting a potential upside of 2.86%. Given Healthcare Services Group’s stronger consensus rating and higher possible upside, analysts clearly believe Healthcare Services Group is more favorable than Legacy Education Alliance.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Legacy Education Alliance	N/A	N/A	N/A
Healthcare Services Group	2.20%	12.23%	7.52%

Earnings and Valuation

This table compares Legacy Education Alliance and Healthcare Services Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Legacy Education Alliance	$150,000.00	0.07	-$2.62 million	($0.07)	0.00
Healthcare Services Group	$1.81 billion	0.73	$39.47 million	$0.54	34.93

Healthcare Services Group has higher revenue and earnings than Legacy Education Alliance. Legacy Education Alliance is trading at a lower price-to-earnings ratio than Healthcare Services Group, indicating that it is currently the more affordable of the two stocks.

Summary

Healthcare Services Group beats Legacy Education Alliance on 12 of the 13 factors compared between the two stocks.

About Legacy Education Alliance

Legacy Education Alliance, Inc., together with its subsidiaries, 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 markets its products and services under the Building Wealth with Legacy and Homemade Investor by Tarek El Moussa brands. It provides its programs through various formats and channels, including free workshops, basic trainings, forums, telephone mentoring, one-on-one mentoring, coaching, and e-learning. Legacy Education Alliance, Inc. was founded in 1996 and is headquartered in Cape Coral, Florida.

About Healthcare Services Group

Healthcare Services Group, Inc. provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. It operates through two segments, Housekeeping and Dietary. The Housekeeping segment engages in the cleaning, disinfecting, and sanitizing of resident rooms and common areas of the customers' facilities, as well as laundering and processing of the bed linens, uniforms, resident personal clothing, and other assorted linen items utilized at the customers' facilities. The Dietary segment provides food purchasing, meal preparation, and professional dietitian services, which include the development of menus that meet the dietary needs of residents; and on-site management and clinical consulting services to facilities. It serves long-term and post-acute care facilities, hospitals, and the healthcare industry through referrals and solicitation of target facilities. The company was incorporated in 1976 and is based in Bensalem, Pennsylvania.