Head-To-Head Contrast: Lixiang Education (NASDAQ:LXEH) versus Laureate Education (NASDAQ:LAUR)

Lixiang Education (NASDAQ:LXEH) and Laureate Education (NASDAQ:LAUR) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Risk & Volatility

Lixiang Education has a beta of -0.46, meaning that its stock price is 146% less volatile than the S&P 500. Comparatively, Laureate Education has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500.

Profitability

This table compares Lixiang Education and Laureate Education’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lixiang Education	N/A	N/A	N/A
Laureate Education	16.08%	22.07%	11.25%

Insider & Institutional Ownership

0.5% of Lixiang Education shares are owned by institutional investors. Comparatively, 96.3% of Laureate Education shares are owned by institutional investors. 75.0% of Lixiang Education shares are owned by company insiders. Comparatively, 1.5% of Laureate Education shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Lixiang Education and Laureate Education, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lixiang Education	1	0	0	0	1.00
Laureate Education	0	2	4	0	2.67

Laureate Education has a consensus price target of $40.00, suggesting a potential upside of 20.77%. Given Laureate Education’s stronger consensus rating and higher probable upside, analysts plainly believe Laureate Education is more favorable than Lixiang Education.

Valuation & Earnings

This table compares Lixiang Education and Laureate Education”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lixiang Education	$30.83 million	0.01	-$17.43 million	N/A	N/A
Laureate Education	$1.70 billion	2.72	$281.63 million	$1.90	17.43

Laureate Education has higher revenue and earnings than Lixiang Education.

Summary

Laureate Education beats Lixiang Education on 11 of the 12 factors compared between the two stocks.

About Lixiang Education

Lixiang Education Holding Co., Ltd. provides primary and middle school education services from grade 1 to grade 9 in the People's Republic of China. As of December 31, 2020, the company operated two campuses, including Baiyun Campus and Yijing Campus. It also engages in the operation of food procurement. The company was formerly known as Lianwai Education Group Limited and changed its name to Lixiang Education Holding Co., Ltd. in May 26, 2020. The company was founded in 2001 and is headquartered in Lishui, the People's Republic of China.

About Laureate Education

Laureate Education, Inc., together with its subsidiaries, offers higher education programs and services to students through a network of universities and higher education institutions. The company provides a range of undergraduate and graduate degree programs in the areas of business and management, medicine and health sciences, and engineering and information technology through campus-based, online, and hybrid programs. It also offers specialized courses for technical and vocational training; and senior high school. Its services are provides in Mexico, Peru, and the United States. The company was formerly known as Sylvan Learning Systems, Inc. and changed its name to Laureate Education, Inc. in May 2004. Laureate Education, Inc. was founded in 1989 and is headquartered in Miami, Florida.