Bridgepoint Education (NYSE: BPI) and Lincoln Educational Services Corporation (NASDAQ:LINC) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Insider & Institutional Ownership

92.8% of Bridgepoint Education shares are owned by institutional investors. Comparatively, 62.1% of Lincoln Educational Services Corporation shares are owned by institutional investors. 41.5% of Bridgepoint Education shares are owned by insiders. Comparatively, 6.1% of Lincoln Educational Services Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Bridgepoint Education -1.39% 9.16% 5.13%
Lincoln Educational Services Corporation -16.19% -24.26% -8.20%

Valuation and Earnings

This table compares Bridgepoint Education and Lincoln Educational Services Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bridgepoint Education $510.19 million 0.51 $33.22 million ($0.06) -147.64
Lincoln Educational Services Corporation $185.33 million 0.36 $6.13 million ($1.55) -1.72

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Bridgepoint Education and Lincoln Educational Services Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bridgepoint Education 0 1 0 0 2.00
Lincoln Educational Services Corporation 0 0 0 0 N/A

Bridgepoint Education presently has a consensus target price of $14.00, indicating a potential upside of 58.01%. Given Bridgepoint Education’s higher probable upside, research analysts clearly believe Bridgepoint Education is more favorable than Lincoln Educational Services Corporation.

Volatility & Risk

Bridgepoint Education has a beta of 2.17, indicating that its share price is 117% more volatile than the S&P 500. Comparatively, Lincoln Educational Services Corporation has a beta of 2.82, indicating that its share price is 182% more volatile than the S&P 500.

Summary

Bridgepoint Education beats Lincoln Educational Services Corporation on 10 of the 11 factors compared between the two stocks.

Bridgepoint Education Company Profile

Bridgepoint Education, Inc. (Bridgepoint) is a provider of postsecondary education services. The Company’s academic institutions include Ashford University and University of the Rockies. Bridgepoint’s institutions conduct ongoing faculty and student assessment processes, and provide a range of student services. It offers Constellation, its learning platform, Waypoint Outcomes, its assessment software, and its mobile application technology. As of December 31, 2016, its institutions offered over 1,200 courses and over 80 degree programs. Ashford University offers associate’s, bachelor’s and master’s degree programs online. Ashford University comprises four colleges: the Forbes School of Business and Technology, the College of Education, the College of Health, Human Services and Science, and the College of Liberal Arts. University of the Rockies is a graduate institution that offers master’s and doctoral degree programs in the social and behavioral sciences.

Lincoln Educational Services Corporation Company Profile

Lincoln Educational Services Corporation is a provider of post-secondary education. The Company operates in two segments: Transportation and Skilled Trades, and Transitional. The Transportation and Skilled Trades segment offers academic programs in the disciplines of transportation and skilled trades (automotive, diesel, heating, ventilation and air conditioning (HVAC), welding and manufacturing). The Transitional segment includes operations that are being phased out and consists of its campus that is being taught out. It offers programs in automotive technology, skilled trades, which include HVAC, welding and computerized numerical control and electronic systems technology; healthcare services, which include nursing, dental assistant and pharmacy technician; hospitality services, which include culinary, therapeutic massage, cosmetology and aesthetics, and business and information technology, which includes information technology and criminal justice programs.

Receive News & Ratings for Bridgepoint Education Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Bridgepoint Education Inc. and related companies with MarketBeat.com's FREE daily email newsletter.