Laureate Education (NASDAQ:LAUR) vs. Arco Platform (NASDAQ:ARCE) Head-To-Head Analysis

Arco Platform (NASDAQ:ARCE) and Laureate Education (NASDAQ:LAUR) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Valuation and Earnings

This table compares Arco Platform and Laureate Education’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arco Platform $100.06 million 12.59 -$22.54 million $0.27 196.93
Laureate Education $3.35 billion 1.36 $370.07 million ($0.03) -696.00

Laureate Education has higher revenue and earnings than Arco Platform. Laureate Education is trading at a lower price-to-earnings ratio than Arco Platform, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Arco Platform and Laureate Education, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arco Platform 0 1 2 0 2.67
Laureate Education 0 0 5 0 3.00

Arco Platform currently has a consensus price target of $54.00, suggesting a potential upside of 1.56%. Laureate Education has a consensus price target of $24.00, suggesting a potential upside of 14.94%. Given Laureate Education’s stronger consensus rating and higher possible upside, analysts clearly believe Laureate Education is more favorable than Arco Platform.

Institutional & Insider Ownership

88.4% of Arco Platform shares are held by institutional investors. Comparatively, 57.0% of Laureate Education shares are held by institutional investors. 3.0% of Laureate Education shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Arco Platform -28.35% 8.92% 6.66%
Laureate Education 28.67% -0.22% -0.08%

Volatility and Risk

Arco Platform has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, Laureate Education has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500.

Summary

Laureate Education beats Arco Platform on 8 of the 14 factors compared between the two stocks.

About Arco Platform

Arco Platform Limited, a technology company in the education sector, provides a pedagogical system with technology-enabled features to deliver educational content to private schools in Brazil. The company's curriculum solutions provide educational content from basic to secondary education K-12 curriculum in printed and digital formats delivered through its platform. As of March 31, 2019, it had a network consisted of 1,462 partner schools and 498,553 enrolled students. The company's activities also comprise editing, publishing, advertising, and sale of educational content for private schools. It serves students, teachers, administrators, and parents. The company was founded in 2004 and is based in Sao Paulo, Brazil.

About Laureate Education

Laureate Education, Inc., together with its subsidiaries, provides higher education programs and services to students through a network of universities and higher education institutions. It operates through five segments: Brazil, Mexico, Andean, Rest of World, and Online & Partnerships. The company offers a range of undergraduate and graduate degree programs primarily 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 operates online institutions that offer professional degree programs primarily for the working adults with undergraduate and graduate degree programs. The company was formerly known as Sylvan Learning Systems, Inc. and changed its name to Laureate Education, Inc. in May 2004. The company was founded in 1989 and is headquartered in Baltimore, Maryland.

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