Head-To-Head Review: Frontdoor (NASDAQ:FTDR) vs. Laureate Education (NASDAQ:LAUR)

Frontdoor (NASDAQ:FTDR) and Laureate Education (NASDAQ:LAUR) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Institutional & Insider Ownership

96.3% of Laureate Education shares are owned by institutional investors. 1.6% of Frontdoor shares are owned by insiders. Comparatively, 1.5% of Laureate Education shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Frontdoor and Laureate Education, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Frontdoor	0	2	5	0	2.71
Laureate Education	1	2	3	1	2.57

Frontdoor presently has a consensus price target of $95.40, suggesting a potential upside of 12.87%. Laureate Education has a consensus price target of $40.90, suggesting a potential upside of 8.66%. Given Frontdoor’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Frontdoor is more favorable than Laureate Education.

Valuation & Earnings

This table compares Frontdoor and Laureate Education”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Frontdoor	N/A	N/A	N/A	$3.77	22.42
Laureate Education	N/A	N/A	N/A	$2.23	16.88

Laureate Education is trading at a lower price-to-earnings ratio than Frontdoor, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Frontdoor and Laureate Education’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Frontdoor	N/A	N/A	N/A
Laureate Education	N/A	N/A	N/A

Summary

Frontdoor beats Laureate Education on 5 of the 7 factors compared between the two stocks.

About Frontdoor

Frontdoor, Inc. provides home warranties in the United States in the United States. Its customizable home warranties help customers protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances. The company’s home warranty customers subscribe to an annual service plan agreement that covers the repair or replacement of principal components of approximately 20 home systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as electronics, pools, and spas and pumps; and heating, ventilation, and air conditioning systems. It also offers on-demand home services and a one-stop app experience for home repair and maintenance; and Streem technology, an app that empowers homeowners by connecting them in real time through video chat with qualified experts to diagnose and solve their problems. The company serves homeowners under the Frontdoor, American Home Shield, HSA, OneGuard, Landmark Home Warranty, Frontdoor logo, and Streem brands. The company was founded in 1971 and is headquartered in Memphis, Tennessee.

About Laureate Education

Laureate Education, Inc., together with its subsidiaries, offers higher education programs and services to students through a network of universities and higher education institutions. The company provides a range of undergraduate and graduate degree programs in the areas of business and management, medicine and health sciences, and engineering and information technology through campus-based, online, and hybrid programs. It also offers specialized courses for technical and vocational training; and senior high school. Its services are provides in Mexico, Peru, and the United States. The company was formerly known as Sylvan Learning Systems, Inc. and changed its name to Laureate Education, Inc. in May 2004. Laureate Education, Inc. was founded in 1989 and is headquartered in Miami, Florida.