Contrasting LAIX (LAIX) and Aspen Group (ASPU)

LAIX (NASDAQ:LAIX) and Aspen Group (NASDAQ:ASPU) are both small-cap consumer defensive companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for LAIX and Aspen Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LAIX 0 1 1 0 2.50
Aspen Group 0 0 1 0 3.00

LAIX currently has a consensus target price of $19.00, suggesting a potential upside of 77.57%. Given LAIX’s higher probable upside, analysts plainly believe LAIX is more favorable than Aspen Group.

Earnings and Valuation

This table compares LAIX and Aspen Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LAIX N/A N/A N/A N/A N/A
Aspen Group $22.02 million 4.58 -$7.06 million ($0.39) -14.00

LAIX has higher earnings, but lower revenue than Aspen Group.

Insider and Institutional Ownership

24.2% of Aspen Group shares are held by institutional investors. 19.4% of Aspen Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares LAIX and Aspen Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LAIX N/A N/A N/A
Aspen Group -36.52% -32.33% -25.18%

About LAIX

LAIX Inc., an artificial intelligence company, provides online English learning services through Liulishuo mobile app in the People's Republic of China. It is also involved in the artificial intelligence lab operation; technology development; and loan arrangement activities. The company was formerly known as LingoChamp Inc. LAIX Inc. was founded in 2013 and is headquartered in Shanghai, the People's Republic of China.

About Aspen Group

Aspen Group, Inc. provides online higher education services in the United States. The company offers certificate programs; and associate, bachelor's, master's, and doctoral degree programs in a range of areas, including nursing, education, business, technology, management, health sciences, and professional and extended studies. As of April 30, 2018, it had 7,057 degree-seeking students enrolled. The company was founded in 1987 and is headquartered in New York, New York.

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