Head to Head Survey: Cengage Learning Holdings II (OTCMKTS:CNGO) versus Laureate Education (NASDAQ:LAUR)

Cengage Learning Holdings II (OTCMKTS:CNGO) and Laureate Education (NASDAQ:LAUR) are both consumer defensive companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Valuation & Earnings

This table compares Cengage Learning Holdings II 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
Cengage Learning Holdings II	N/A	N/A	N/A	N/A	N/A
Laureate Education	$1.48 billion	1.49	$107.59 million	$0.64	21.86

Laureate Education has higher revenue and earnings than Cengage Learning Holdings II.

Insider and Institutional Ownership

96.3% of Laureate Education shares are owned by institutional investors. 2.2% of Laureate Education shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Cengage Learning Holdings II and Laureate Education, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cengage Learning Holdings II	0	0	0	0	N/A
Laureate Education	0	0	2	0	3.00

Laureate Education has a consensus price target of $17.00, suggesting a potential upside of 21.52%. Given Laureate Education’s higher probable upside, analysts clearly believe Laureate Education is more favorable than Cengage Learning Holdings II.

Profitability

This table compares Cengage Learning Holdings II and Laureate Education’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cengage Learning Holdings II	N/A	N/A	N/A
Laureate Education	7.26%	12.69%	5.54%

Summary

Laureate Education beats Cengage Learning Holdings II on 8 of the 8 factors compared between the two stocks.

About Cengage Learning Holdings II

Cengage Learning Holdings II, Inc., together with its subsidiaries, operates as an education technology company worldwide. The company operates through three segments: Cengage Academic, Cengage Work, and Cengage Select. It offers eTextbooks; Cengage Unlimited, a subscription service for digital higher education materials; eTextbook subscription service; Cengage Infuse, an embedded course kit with a user experience for instructors; print textbooks, study guides, laboratory exercises, instructor editions, and supplemental products; and course and custom content development, and direct assistance to instructors and students for implementation and ongoing use of digital and print solutions. The company also provides various platforms, such as MindTap for as business and economics, social sciences, trades, and skills; WebAssign for mathematics and physics; Skills Assessment Manager for introductory computing; Cengage NOW for accounting; and Online Web-Based Learning for such as chemistry. In addition, it offers ed2go, an online learning platform; K-12, public, and academic libraries under the Gale brand, as well as licenses its proprietary and third-party content for integration with web-based information providers; English language curriculum and digital solutions under the NGL brand; educational resources for career-focused beauty and wellness education providers; and literacy materials to K-6 students under the Nelson brand. Further, the company Infosec, a cybersecurity education platform comprising Bootcamps, which provides instructor-led, digital course experiences for cybersecurity certifications or skill sets; Infosec Skills that offers training for reskilling and upskilling in the cybersecurity profession; and Infosec IQ, which offers security awareness training for non-technical learners to recognize, avoid, and report cyber-attacks and security incidents. The company was founded in 1903 and is headquartered in Boston, Massachusetts.

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.