Comparing Strategic Education (NASDAQ:STRA) & Everybody Loves Languages (OTCMKTS:LMDCF)

Everybody Loves Languages (OTCMKTS:LMDCF) and Strategic Education (NASDAQ:STRA) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Volatility and Risk

Everybody Loves Languages has a beta of -21.33, meaning that its share price is 2,233% less volatile than the S&P 500. Comparatively, Strategic Education has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Institutional and Insider Ownership

93.3% of Strategic Education shares are owned by institutional investors. 3.6% of Strategic Education shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Everybody Loves Languages and Strategic Education, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everybody Loves Languages	0	0	0	0	0.00
Strategic Education	0	2	2	1	2.80

Strategic Education has a consensus target price of $92.67, indicating a potential upside of 13.76%. Given Strategic Education’s stronger consensus rating and higher probable upside, analysts plainly believe Strategic Education is more favorable than Everybody Loves Languages.

Valuation & Earnings

This table compares Everybody Loves Languages and Strategic Education”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everybody Loves Languages	$1.78 million	N/A	$310,000.00	N/A	N/A
Strategic Education	$1.27 billion	1.45	$126.61 million	$5.42	15.03

Strategic Education has higher revenue and earnings than Everybody Loves Languages.

Profitability

This table compares Everybody Loves Languages and Strategic Education’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Everybody Loves Languages	9.89%	7.93%	6.72%
Strategic Education	9.98%	8.75%	6.95%

Summary

Strategic Education beats Everybody Loves Languages on 12 of the 12 factors compared between the two stocks.

About Everybody Loves Languages

Everybody Loves Languages Corp., an edtech language-learning and content development company, develops, markets, and supports a suite of English and other language learning solutions in the People's Republic of China. The company operates in two segments, Content-Based English Language Learning (License of Intellectual Property), and Online and Offline Language Learning. The Content-Based English Language Learning segment publishes print-based English language learning textbook programs. It co-publishes approximately 870 million units from library of program titles. The Online English Language Learning segment provides web-based educational technology language learning, training, and assessment solutions. It develops and markets libraries of online language learning resources and offers approximately 3,000 hours of interactive learning through various product offerings that include Winnie's World, English Academy, Campus, English for Success, AcadeMe English, AcadeMe Junior, and Master and Business English. The company markets its products in Latin America, Asia, Europe, and the United States through a network of distributors. The company was formerly known as Lingo Media Corporation and changed its name to Everybody Loves Languages Corp. in October 2022. Everybody Loves Languages Corp. is headquartered in Toronto, Canada.

About Strategic Education

Strategic Education, Inc., through its subsidiaries, provides education services through campus-based and online post-secondary education, and programs to develop job-ready skills. The company operates through U.S. Higher Education, Australia/New Zealand, and Education Technology Services segments. It operates Strayer University that offers undergraduate and graduate degree programs in business, criminal justice, education, health services, information technology, and public administration at physical campuses located in the eastern United States, as well as through online; non-degree web and mobile application development courses through Hackbright Academy and Devmountain; and MBA online through its Jack Welch Management Institute. In addition, the company operates Capella University that provides post-secondary education; Torrens University, which offers undergraduate, graduate, higher degree by research, and specialized degree courses primarily in business, design and creative technology, health, hospitality, and education fields through online and on physical campuses located in Australia; Think Education, a vocational training organization; and Media Design School, which provides industry-endorsed courses in 3D animation and visual effects, game art and programming, graphic and motion design, digital media artificial intelligence, and creative advertising in New Zealand. It also offers Workforce Edge, a platform to employers that provides education benefits administration solutions; and Sophia Learning, which enables lower cost education benefits programs. Strategic Education, Inc. was founded in 1892 and is headquartered in Herndon, Virginia.