Head-To-Head Comparison: Lincoln Educational Services (NASDAQ:LINC) & Frontdoor (NASDAQ:FTDR)

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

Risk & Volatility

Lincoln Educational Services has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Frontdoor has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lincoln Educational Services	3.99%	14.47%	5.76%
Frontdoor	12.96%	124.74%	15.33%

Analyst Ratings

This is a breakdown of current recommendations for Lincoln Educational Services and Frontdoor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lincoln Educational Services	0	2	4	0	2.67
Frontdoor	0	2	5	0	2.71

Lincoln Educational Services currently has a consensus target price of $50.00, suggesting a potential upside of 183.13%. Frontdoor has a consensus target price of $97.40, suggesting a potential upside of 0.32%. Given Lincoln Educational Services’ higher possible upside, research analysts plainly believe Lincoln Educational Services is more favorable than Frontdoor.

Earnings and Valuation

This table compares Lincoln Educational Services and Frontdoor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lincoln Educational Services	$518.24 million	1.08	$20.00 million	$0.72	24.53
Frontdoor	$2.09 billion	3.20	$255.00 million	$3.77	25.75

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

Insider and Institutional Ownership

72.2% of Lincoln Educational Services shares are owned by institutional investors. 12.8% of Lincoln Educational Services shares are owned by insiders. Comparatively, 1.6% of Frontdoor shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Frontdoor beats Lincoln Educational Services on 11 of the 14 factors compared between the two stocks.

About Lincoln Educational Services

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 two segments, Campus Operations and Transitional. It offers associate's degree, and diploma and certificate programs in automotive technology; skilled trades programs, including electrical, heating and air conditioning repair, welding, computerized numerical control, and electrical and electronic systems technology; health science programs comprising licensed practical nurse, registered nurse, dental assistant, medical assistant, medical administrative assistant, and claims examiner; hospitality service and information technology programs, such as culinary, therapeutic massage, cosmetology, aesthetics, and computer systems support technicians. The company operates schools under the Lincoln Technical Institute, Lincoln College of Technology, Lincoln Culinary Institute, Euphoria Institute of Beauty Arts and Sciences, and other brand names. Lincoln Educational Services Corporation was founded in 1946 and is based in Parsippany, New Jersey.

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.