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STRA or LINC: Which Is the Better Value Stock Right Now?
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Investors interested in Schools stocks are likely familiar with Strategic Education (STRA - Free Report) and Lincoln Educational Services Corporation (LINC - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Strategic Education has a Zacks Rank of #2 (Buy), while Lincoln Educational Services Corporation has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that STRA likely has seen a stronger improvement to its earnings outlook than LINC has recently. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
STRA currently has a forward P/E ratio of 10.75, while LINC has a forward P/E of 58.92. We also note that STRA has a PEG ratio of 0.72. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LINC currently has a PEG ratio of 3.93.
Another notable valuation metric for STRA is its P/B ratio of 1.07. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, LINC has a P/B of 7.36.
Based on these metrics and many more, STRA holds a Value grade of A, while LINC has a Value grade of D.
STRA stands above LINC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that STRA is the superior value option right now.
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STRA or LINC: Which Is the Better Value Stock Right Now?
Investors interested in Schools stocks are likely familiar with Strategic Education (STRA - Free Report) and Lincoln Educational Services Corporation (LINC - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Strategic Education has a Zacks Rank of #2 (Buy), while Lincoln Educational Services Corporation has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that STRA likely has seen a stronger improvement to its earnings outlook than LINC has recently. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
STRA currently has a forward P/E ratio of 10.75, while LINC has a forward P/E of 58.92. We also note that STRA has a PEG ratio of 0.72. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LINC currently has a PEG ratio of 3.93.
Another notable valuation metric for STRA is its P/B ratio of 1.07. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, LINC has a P/B of 7.36.
Based on these metrics and many more, STRA holds a Value grade of A, while LINC has a Value grade of D.
STRA stands above LINC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that STRA is the superior value option right now.