Analyzing Learning Tree International (LTRE) & Career Education (CECO)

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Learning Tree International (OTCMKTS:LTRE) and Career Education (NASDAQ:CECO) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for Learning Tree International and Career Education, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Learning Tree International 0 0 0 0 N/A
Career Education 0 1 2 0 2.67

Career Education has a consensus price target of $19.50, suggesting a potential upside of 44.55%. Given Career Education’s higher possible upside, analysts clearly believe Career Education is more favorable than Learning Tree International.

Earnings and Valuation

This table compares Learning Tree International and Career Education’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Learning Tree International $64.32 million 0.06 -$2.05 million N/A N/A
Career Education $596.43 million 1.58 -$31.89 million $0.31 43.52

Learning Tree International has higher earnings, but lower revenue than Career Education.

Volatility and Risk

Learning Tree International has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500. Comparatively, Career Education has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500.

Profitability

This table compares Learning Tree International and Career Education’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Learning Tree International -3.20% N/A -7.11%
Career Education -0.57% 16.59% 11.57%

Insider & Institutional Ownership

7.5% of Learning Tree International shares are owned by institutional investors. Comparatively, 82.4% of Career Education shares are owned by institutional investors. 57.7% of Learning Tree International shares are owned by insiders. Comparatively, 5.7% of Career Education shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Career Education beats Learning Tree International on 8 of the 11 factors compared between the two stocks.

About Learning Tree International

Learning Tree International, Inc., together with its subsidiaries, develops, markets, and delivers a library of instructor-led classroom courses for professional development needs of information technology (IT) professionals and managers worldwide. It offers education and training courses across a range of technical and management disciplines, such as operating systems, databases, computer networks, cyber and network security, Web development, programming languages, software engineering, open source applications, project management, business skills, leadership, and professional development. The company also provides courses through its proprietary live online learning platform, Learning Tree AnyWare that allow individuals at any location to participate online in instructor-led classes conducted live in its Education Centers, at customer locations, or at other facilities; and workforce optimization solutions to support an IT organization's life-cycle of workforce development needs. As of September 29, 2018, its library of instructor-led courses comprised 299 instructor-led course titles, including 181 multi-day IT course titles, 82 multi-day management course titles, and 36 one-day course titles. The company markets and sells its course offerings through direct and electronic mail, telemarketing, and field sales channels. It serves national and multinational companies, government organizations, and small and medium-size companies. The company was founded in 1974 and is headquartered in Herndon, Virginia. Learning Tree International, Inc. is a subsidiary of The Kevin Ross Gruneich Legacy Trust.

About Career Education

Career Education Corporation operates colleges, institutions, and universities that provide education to student population in various career-oriented disciplines through online, campus based, and blended learning programs in the United States. The company operates through three segments: Colorado Technical University (CTU), American InterContinental University (AIU), and All Other Campuses. Its colleges and universities include AIU, CTU, Le Cordon Bleu institutions, Briarcliffe College, and Sanford-Brown College. The company offers doctoral, master's, bachelor's, and associate degrees, as well as diploma and certificate programs. It also provides academic programs in the career-oriented disciplines of business studies, nursing, computer science, engineering, information systems and technologies, cybersecurity, and healthcare management, as well as information technologies, and education and criminal justice; and educational programs in culinary arts, as well as patisserie and baking. As of December 31, 2017, the company had a total student enrollment of approximately 34,800 students. Career Education Corporation was founded in 1994 and is headquartered in Schaumburg, Illinois.

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