Reviewing Scholastic (SCHL) & Lingo Media (LMDCF)

Scholastic (NASDAQ:SCHL) and Lingo Media (OTCMKTS:LMDCF) are both small-cap consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Scholastic and Lingo Media, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Scholastic 1 1 1 0 2.00
Lingo Media 0 0 0 0 N/A

Scholastic currently has a consensus price target of $44.00, indicating a potential downside of 3.30%. Given Scholastic’s higher possible upside, analysts plainly believe Scholastic is more favorable than Lingo Media.

Dividends

Scholastic pays an annual dividend of $0.60 per share and has a dividend yield of 1.3%. Lingo Media does not pay a dividend. Scholastic pays out 42.0% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Scholastic and Lingo Media’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Scholastic $1.63 billion 0.98 -$5.00 million $1.43 31.82
Lingo Media $2.14 million 1.16 -$4.83 million N/A N/A

Lingo Media has lower revenue, but higher earnings than Scholastic.

Risk & Volatility

Scholastic has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Lingo Media has a beta of -0.63, indicating that its stock price is 163% less volatile than the S&P 500.

Insider and Institutional Ownership

81.1% of Scholastic shares are owned by institutional investors. 21.8% of Scholastic shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Scholastic and Lingo Media’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Scholastic -0.16% 3.82% 2.61%
Lingo Media -290.63% -342.59% -230.00%

Summary

Scholastic beats Lingo Media on 10 of the 13 factors compared between the two stocks.

About Scholastic

Scholastic Corporation publishes and distributes children's books worldwide. It operates in three segments: Children's Book Publishing and Distribution, Education, and International. The Children's Book Publishing and Distribution segment publishes and distributes children's books, e-books, media, and interactive products through its school book club and school book fair channels, as well as through its trade channel. Its original publications include Harry Potter, The Hunger Games, The 39 Clues, Spirit Animals, The Magic School Bus, I Spy, Captain Underpants, Dog Man, Goosebumps, and Clifford The Big Red Dog; and licensed properties comprise Star Wars, Lego, Pokemon, and Geronimo Stilton. In addition, this segment publishes and creates books plus products for children, including titles, such as Sew Mini Treats, Lego Chain Reactions, and Make Your Own Bath Bombs under the Klutz name. The Education segment publishes and distributes classroom magazines under the Scholastic News, Scope, Storyworks, Let's Find Out, and Junior Scholastic names; non-fiction books under the Children's Press and Franklin Watts names; consumer magazine and custom products under the Teacher magazine name; and literacy curriculum products under the Scholastic Literacy name, as well as provides children's books, other print and online references, fiction focused products, classroom materials, and consulting services. The International segment offers original trade and educational publishing programs; distributes children's books, digital educational resources, and other materials through school-based book clubs, school-based book fairs, and trade channels; produces and distributes magazines; and offers online services. This segment has operations in approximately 135 countries. The company distributes its products and services directly to schools and libraries through retail stores and the Internet. Scholastic Corporation was founded in 1920 and is headquartered in New York, New York.

About Lingo Media

Lingo Media Corporation develops, markets, and supports a suite of English language learning solutions in the People's Republic of China. The company operates in two segments, Print-based English Language Learning and Online English Language Learning. The Print-based English Language Learning segment publishes print-based English language learning textbook programs. It has co-published approximately 600 million units from library of program titles. This segment prints and sells Lingo Learning's English language training programs to provincial distributors; and licenses Lingo Learning's English language training programs to provincial publishers who print and sell the programs to provincial distributors. The Online English Language Learning segment provides Web-based educational technology English language learning training and assessment solutions, such as Web-based software licensing subscriptions, online and professional services, audio practice tools, and multi-platform applications. It offers 2,000 hours of interactive learning through various product offerings that include Winnie's World, English Academy, Scholar, Campus, English for Success, and Master and English for Success. This segment also markets its products in Latin America through a network of distributors. Lingo Media Corporation is headquartered in Toronto, Canada.

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