LAIX (NYSE:LAIX) versus Adtalem Global Education (NYSE:ATGE) Critical Contrast


LAIX (NYSE: LAIXGet a rating) and Adtalem Global Education (NYSE:ATGEGet a rating) are both small-cap business services companies, but which is the better investment? We’ll compare the two companies based on earnings strength, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Insider and Institutional Ownership

13.2% of LAIX shares are held by institutional investors. Comparatively, 98.3% of Adtalem Global Education shares are held by institutional investors. 2.8% of Adtalem Global Education shares are held by insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company is poised for long-term growth.

Volatility and risk

LAIX has a beta of 0.77, which means its price is 23% less volatile than the S&P 500. In comparison, Adtalem Global Education has a beta of 1.21, which means its price is 21% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for LAIX and Adtalem Global Education, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
LAIX 0 0 0 0 N / A
Adtalem Global Education 0 1 1 0 2.50

Adtalem Global Education has a consensus price target of $41.00, suggesting a potential upside of 39.88%. Given the higher possible upside of Adtalem Global Education, analysts clearly believe that Adtalem Global Education is more favorable than LAIX.

Benefits and evaluation

This table compares the gross revenue, earnings per share and valuation of LAIX and Adtalem Global Education.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
LAIX $149.06 million 0.05 -$60.51 million ($3.36) -0.62
Adtalem Global Education $1.11 billion 1.31 $76.91 million ($0.15) -195.40

Adtalem Global Education has higher revenue and profit than LAIX. Adtalem Global Education trades at a lower price-to-earnings ratio than LAIX, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares the net margins, return on equity and return on assets of LAIX and Adtalem Global Education.

Net margins Return on equity return on assets
LAIX N / A N / A N / A
Adtalem Global Education -0.51% 10.93% 4.17%

Summary

Adtalem Global Education beats LAIX on 11 of the 13 factors compared between the two stocks.

About LAIX (Get a rating)

LAIX Inc., an artificial intelligence (AI) company, provides online English learning products and services in the People’s Republic of China. It offers the English Liulishuo app, which offers a suite of courses, including free courses for learning hobbies, paid standard custom courses, DongNi English and other paid courses, as well as the DongNi English A app. +; LiuLi Reading mobile app that allows users to read articles from editors supplemented with in-depth learning tips and quizzes; and Kids Liulishuo, a mobile application that improves children’s reading, hearing and speaking skills. The company also provides IELTS Liulishuo app for IELTS speaking practice tests; and corporate learning services for corporate clients. Additionally, he is involved in the running of the AI ​​lab; technology development; and providing loan arrangement and marketing support services. The company was formerly known as LingoChamp Inc. LAIX Inc. was incorporated in 2013 and is headquartered in Shanghai, People’s Republic of China.

About Adtalem Global Education (Get a rating)

Adtalem Global Education Inc. provides workforce solutions worldwide. It operates through two segments, Medical and Healthcare; and Financial Services. The Medical and Healthcare segment offers degree and non-degree programs in the medical and healthcare post-secondary education sector. This segment operates Chamberlain University, American University of the Caribbean School of Medicine, Ross University School of Medicine and Ross University School of Veterinary Medicine. The Financial Services segment offers test preps, certifications, conferences, seminars, memberships and subscriptions to business professionals in the fields of accounting, anti-money laundering, banking and mortgage loans. He operates the Association of Certified Anti-Money Laundering Specialists, Becker Professional Education, OnCourse Learning and EduPristine. The company was formerly known as DeVry Education Group Inc. and changed its name to Adtalem Global Education Inc. in May 2017. Adtalem Global Education Inc. was incorporated in 1987 and is based in Chicago, Illinois.



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