Lincoln Educational Services (NASDAQ:LINC) vs. Afya (NASDAQ:AFYA) Head-To-Head Review

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

Institutional & Insider Ownership

64.1% of Lincoln Educational Services shares are owned by institutional investors. Comparatively, 29.2% of Afya shares are owned by institutional investors. 25.0% of Lincoln Educational Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Lincoln Educational Services and Afya’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lincoln Educational Services $273.34 million 0.38 $2.02 million $0.08 48.75
Afya $182.42 million 11.53 $39.00 million $0.70 33.49

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Lincoln Educational Services and Afya, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lincoln Educational Services 0 0 4 0 3.00
Afya 0 3 4 0 2.57

Lincoln Educational Services presently has a consensus target price of $5.13, indicating a potential upside of 31.41%. Afya has a consensus target price of $26.53, indicating a potential upside of 13.18%. Given Lincoln Educational Services’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Lincoln Educational Services is more favorable than Afya.

Profitability

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

Net Margins Return on Equity Return on Assets
Lincoln Educational Services 2.05% 15.34% 3.37%
Afya 23.71% 13.56% 9.29%

Summary

Lincoln Educational Services beats Afya on 7 of the 12 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 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.

About Afya

Afya Limited, through its subsidiaries, operates as a medical education group in Brazil. The company provides educational products and services, including medical schools, medical residency preparatory courses, graduate courses, and other programs to lifelong medical learners enrolled across its distribution network, as well as to third-party medical schools. It offers health sciences courses, which comprise medicine, dentistry, nursing, radiology, psychology, pharmacy, physical education, physiotherapy, nutrition, and biomedicine; and degree programs and courses in other subjects and disciplines, including undergraduate and post graduate courses in business administration, accounting, law, physical education, civil engineering, industrial engineering, and pedagogy. In addition, the company provides medical preparatory courses and other continuing medical education services through its online platform; and develops and sells electronically distributed educational courses on medicine science, and related printed and technological educational content. As of June 24, 2019, its network consisted of 23 operating campuses, 21 of which are undergraduate and graduate medical school campuses. The company was founded in 1999 and is headquartered in Nova Lima, Brazil.

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