OneSpaWorld (NASDAQ:OSW) & Lincoln Educational Services (NASDAQ:LINC) Head-To-Head Survey
by Michael Walen · The Markets DailyLincoln Educational Services (NASDAQ:LINC – Get Free Report) and OneSpaWorld (NASDAQ:OSW – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.
Risk and Volatility
Lincoln Educational Services has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, OneSpaWorld has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.
Institutional and Insider Ownership
72.2% of Lincoln Educational Services shares are held by institutional investors. Comparatively, 96.0% of OneSpaWorld shares are held by institutional investors. 12.8% of Lincoln Educational Services shares are held by insiders. Comparatively, 3.6% of OneSpaWorld shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Lincoln Educational Services and OneSpaWorld”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lincoln Educational Services | $518.24 million | 1.48 | $20.00 million | $0.72 | 33.64 |
| OneSpaWorld | $961.00 million | 2.38 | $71.62 million | $0.79 | 28.58 |
OneSpaWorld has higher revenue and earnings than Lincoln Educational Services. OneSpaWorld is trading at a lower price-to-earnings ratio than Lincoln Educational Services, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Lincoln Educational Services and OneSpaWorld, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lincoln Educational Services | 0 | 2 | 4 | 0 | 2.67 |
| OneSpaWorld | 0 | 1 | 5 | 1 | 3.00 |
Lincoln Educational Services presently has a consensus target price of $50.67, suggesting a potential upside of 109.19%. OneSpaWorld has a consensus target price of $30.60, suggesting a potential upside of 35.52%. Given Lincoln Educational Services’ higher probable upside, research analysts plainly believe Lincoln Educational Services is more favorable than OneSpaWorld.
Profitability
This table compares Lincoln Educational Services and OneSpaWorld’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lincoln Educational Services | 3.99% | 14.47% | 5.76% |
| OneSpaWorld | 8.02% | 18.36% | 14.28% |
Summary
OneSpaWorld beats Lincoln Educational Services on 12 of the 15 factors compared between the two stocks.
About Lincoln Educational Services
Lincoln Educational Services Corporation, together with its subsidiaries, provides various career-oriented post-secondary education services to high school graduates and working adults in the United States. The company operates in two segments, Campus Operations and Transitional. It offers associate's degree, and diploma and certificate programs in automotive technology; skilled trades programs, including electrical, heating and air conditioning repair, welding, computerized numerical control, and electrical and electronic systems technology; health science programs comprising licensed practical nurse, registered nurse, dental assistant, medical assistant, medical administrative assistant, and claims examiner; hospitality service and information technology programs, such as culinary, therapeutic massage, cosmetology, aesthetics, and computer systems support technicians. The company operates schools under the Lincoln Technical Institute, Lincoln College of Technology, Lincoln Culinary Institute, Euphoria Institute of Beauty Arts and Sciences, and other brand names. Lincoln Educational Services Corporation was founded in 1946 and is based in Parsippany, New Jersey.
About OneSpaWorld
OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services. The company also provides its guests access to beauty and wellness brands, including ELEMIS, Grown Alchemist, Kérastase, Dysport, Restylane, Thermage, CoolSculpting, truSculpt 3D, truSculpt iD, Good Feet, and Hyperice with various brands offered in the cruise market. The company is based in Nassau, Bahamas.