Critical Survey: Lingo Media (LMDCF) and Houghton Mifflin Harcourt (HMHC)

Lingo Media (OTCMKTS:LMDCF) and Houghton Mifflin Harcourt (NASDAQ:HMHC) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Lingo Media -300.19% -1,572.88% -436.71%
Houghton Mifflin Harcourt -4.69% -15.66% -4.78%

Analyst Recommendations

This is a summary of recent ratings and price targets for Lingo Media and Houghton Mifflin Harcourt, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lingo Media 0 0 0 0 N/A
Houghton Mifflin Harcourt 1 2 2 0 2.20

Houghton Mifflin Harcourt has a consensus price target of $8.40, suggesting a potential downside of 9.97%. Given Houghton Mifflin Harcourt’s higher possible upside, analysts clearly believe Houghton Mifflin Harcourt is more favorable than Lingo Media.

Volatility and Risk

Lingo Media has a beta of -0.7, indicating that its share price is 170% less volatile than the S&P 500. Comparatively, Houghton Mifflin Harcourt has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Institutional and Insider Ownership

95.1% of Houghton Mifflin Harcourt shares are held by institutional investors. 1.1% of Houghton Mifflin Harcourt shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Lingo Media and Houghton Mifflin Harcourt’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lingo Media $2.14 million 0.83 -$4.83 million N/A N/A
Houghton Mifflin Harcourt $1.41 billion 0.82 -$103.18 million ($1.25) -7.46

Lingo Media has higher earnings, but lower revenue than Houghton Mifflin Harcourt.

Summary

Houghton Mifflin Harcourt beats Lingo Media on 9 of the 11 factors compared between the two stocks.

Lingo Media Company Profile

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.

Houghton Mifflin Harcourt Company Profile

Houghton Mifflin Harcourt Company, a learning company, provides content, services, and technology solutions for educational institutions and consumers worldwide. The company operates in two segments, Education and Trade Publishing. The Education segment provides educational products, technology platforms, and services, including print and digital content in the form of textbooks, digital courseware, instructional aids, educational assessment, and intervention solutions for students. The Trade Publishing segment primarily develops, markets, and sells consumer books in print and digital formats, as well as licenses book rights to other publishers and electronic businesses; and trade and reference materials, such as adult and children's fiction and non-fiction books to schools, colleges, libraries, office supply distributors, and other businesses. This segment distributes products through retail stores comprising physical and online, and wholesalers. Houghton Mifflin Harcourt Company has strategic partnership with VIPKid to develop learning programs. The company was formerly known as HMH Holdings (Delaware), Inc. and changed its name to Houghton Mifflin Harcourt Company in October 2013. Houghton Mifflin Harcourt Company was founded in 1832 and is headquartered in Boston, Massachusetts.

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