Financial Analysis: Arco Platform (NASDAQ:ARCE) versus Lincoln Educational Services (NASDAQ:LINC)
Arco Platform (NASDAQ:ARCE) and Lincoln Educational Services (NASDAQ:LINC) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.
This is a summary of recent recommendations and price targets for Arco Platform and Lincoln Educational Services, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lincoln Educational Services||0||0||1||0||3.00|
Valuation & Earnings
This table compares Arco Platform and Lincoln Educational Services’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Arco Platform||$100.06 million||11.20||$6.13 million||$0.27||182.81|
|Lincoln Educational Services||$263.20 million||0.18||-$6.55 million||($0.27)||-6.89|
Arco Platform has higher earnings, but lower revenue than Lincoln Educational Services. Lincoln Educational Services is trading at a lower price-to-earnings ratio than Arco Platform, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
91.0% of Arco Platform shares are owned by institutional investors. Comparatively, 63.5% of Lincoln Educational Services shares are owned by institutional investors. 6.3% of Lincoln Educational Services shares are owned by 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.
This table compares Arco Platform and Lincoln Educational Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lincoln Educational Services||-1.94%||-14.22%||-3.80%|
Arco Platform beats Lincoln Educational Services on 9 of the 13 factors compared between the two stocks.
Arco Platform Company Profile
Arco Platform Limited, a technology company in the education sector, provides a pedagogical system with technology-enabled features to deliver educational content to private schools in Brazil. The company's curriculum solutions provide educational content from basic to secondary education K-12 curriculum in printed and digital formats delivered through its platform. As of March 31, 2019, it had a network consisted of 1,462 partner schools and 498,553 enrolled students. The company's activities also comprise editing, publishing, advertising, and sale of educational content for private schools. It serves students, teachers, administrators, and parents. The company was founded in 2004 and is based in Sao Paulo, Brazil.
Lincoln Educational Services Company Profile
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 associate's degree, and diploma and certificate programs in automotive technology, skilled trades, healthcare services, hospitality services, and information technology areas. The company operates 22 schools in 14 states under the Lincoln Technical Institute, Lincoln College of Technology, Lincoln Culinary Institute, Euphoria Institute of Beauty Arts and Sciences, and associated brand names. As of December 31, 2018, it had 10,525 students enrolled. Lincoln Educational Services Corporation was founded in 1946 and is headquartered in West Orange, New Jersey.
Receive News & Ratings for Arco Platform Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Arco Platform and related companies with MarketBeat.com's FREE daily email newsletter.