Head-To-Head Analysis: Lincoln Educational Services (NASDAQ:LINC) versus WW International (NASDAQ:WW)

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

Insider & Institutional Ownership

86.2% of WW International shares are owned by institutional investors. Comparatively, 72.2% of Lincoln Educational Services shares are owned by institutional investors. 0.4% of WW International shares are owned by company insiders. Comparatively, 12.8% of Lincoln Educational Services shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
WW International	-56.84%	N/A	-0.32%
Lincoln Educational Services	3.99%	14.47%	5.76%

Volatility & Risk

WW International has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500. Comparatively, Lincoln Educational Services has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Earnings & Valuation

This table compares WW International and Lincoln Educational Services”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WW International	$710.64 million	0.20	-$112.25 million	($10.13)	-1.39
Lincoln Educational Services	$518.24 million	1.83	$20.00 million	$0.72	41.58

Lincoln Educational Services has lower revenue, but higher earnings than WW International. WW International 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 recent ratings and recommmendations for WW International and Lincoln Educational Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WW International	1	2	0	0	1.67
Lincoln Educational Services	0	2	4	0	2.67

Lincoln Educational Services has a consensus target price of $50.67, suggesting a potential upside of 69.23%. Given Lincoln Educational Services’ stronger consensus rating and higher probable upside, analysts clearly believe Lincoln Educational Services is more favorable than WW International.

Summary

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

About WW International

WW International, Inc. provides weight management products and services worldwide. It offers a range of nutritional, activity, behavioral, and lifestyle tools and approaches products and services. The company also provides various digital subscription products to wellness and weight management business, which provide interactive and personalized resources that allow users to follow its weight management program through its app and web-based platform; and allows members to inspire and support each other by sharing their experiences with other people on weight health journeys. In addition, it licenses its trademarks and other intellectual property in food, beverages, and other relevant consumer products and services, as well as provides publishing services. The company was formerly known as Weight Watchers International, Inc. and changed its name to WW International, Inc. in September 2019. WW International, Inc. was founded in 1961 and is headquartered in New York, New York.

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.