Analyzing Classover (NASDAQ:KIDZ) and Lincoln Educational Services (NASDAQ:LINC)

Lincoln Educational Services (NASDAQ:LINC) and Classover (NASDAQ:KIDZ) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of recent ratings for Lincoln Educational Services and Classover, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lincoln Educational Services	0	2	4	0	2.67
Classover	1	0	0	0	1.00

Lincoln Educational Services currently has a consensus price target of $50.67, suggesting a potential upside of 130.72%. Given Lincoln Educational Services’ stronger consensus rating and higher possible upside, research analysts plainly believe Lincoln Educational Services is more favorable than Classover.

Insider and Institutional Ownership

72.2% of Lincoln Educational Services shares are owned by institutional investors. Comparatively, 74.7% of Classover shares are owned by institutional investors. 12.8% of Lincoln Educational Services shares are owned by company insiders. Comparatively, 0.1% of Classover shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Lincoln Educational Services has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, Classover has a beta of -0.65, meaning that its share price is 165% less volatile than the S&P 500.

Profitability

This table compares Lincoln Educational Services and Classover’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%
Classover	-338.62%	-167.79%	-59.29%

Valuation & Earnings

This table compares Lincoln Educational Services and Classover”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	$518.24 million	1.34	$20.00 million	$0.72	30.50
Classover	$3.37 million	0.42	-$7.05 million	$99.95	0.02

Lincoln Educational Services has higher revenue and earnings than Classover. Classover 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.

Summary

Lincoln Educational Services beats Classover on 11 of the 13 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 Classover

Classover is an online enrichment program in Manhattan, New York that offers over 20 courses taught by certified instructors. It caters to children aged 4 to 17, providing personalized attention and a supportive learning environment. Classover is recognized worldwide by over 20,000 parents and children in more than 34 countries. Classover’s proprietary course platform app provides exclusive benefits to students, including access to class schedules, remaining class credits, and class history. As an official test center for the Math Kangaroo Competition and other high-value competition channels, Classover is certified to provide high-quality teaching services to help students improve their academic performance. The school’s WASC certification is a testament to its teaching quality, meeting high standards in student satisfaction, teacher qualifications, classroom environment, and course content quality. Classover limits class size to six students to ensure personalized attention, delivering over 330,000 hours of online classes with a course renewal rate exceeding 90%. The platform has helped students win competition awards, making it a recognized “The Best Parenting Tool” in the parent community.