Comparing Vasta Platform (NASDAQ:VSTA) and Legacy Education Alliance (OTCMKTS:LEAI)

Legacy Education Alliance (OTCMKTS:LEAIGet Rating) and Vasta Platform (NASDAQ:VSTAGet Rating) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.

Profitability

This table compares Legacy Education Alliance and Vasta Platform’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Legacy Education Alliance -25.34% -14.68% -63.94%
Vasta Platform -8.99% 1.13% 0.76%

Earnings & Valuation

This table compares Legacy Education Alliance and Vasta Platform’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Legacy Education Alliance $7.71 million 0.78 -$570,000.00 N/A N/A
Vasta Platform $175.60 million 2.14 -$22.00 million ($0.21) -21.43

Legacy Education Alliance has higher earnings, but lower revenue than Vasta Platform.

Volatility & Risk

Legacy Education Alliance has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Vasta Platform has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Legacy Education Alliance and Vasta Platform, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Legacy Education Alliance 0 0 0 0 N/A
Vasta Platform 0 1 0 0 2.00

Vasta Platform has a consensus price target of $6.50, indicating a potential upside of 44.44%. Given Vasta Platform’s higher probable upside, analysts clearly believe Vasta Platform is more favorable than Legacy Education Alliance.

Institutional & Insider Ownership

4.0% of Legacy Education Alliance shares are owned by institutional investors. Comparatively, 21.7% of Vasta Platform shares are owned by institutional investors. 28.1% of Legacy Education Alliance shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Vasta Platform beats Legacy Education Alliance on 8 of the 10 factors compared between the two stocks.

About Legacy Education Alliance (Get Rating)

Legacy Education Alliance, Inc., together with its subsidiaries, provides educational training on the topics of personal finance, entrepreneurship, real estate, and financial markets investing strategies and techniques in North America, the United Kingdom, and internationally. The company markets its products and services under the Building Wealth with Legacy brand. Legacy Education Alliance, Inc. provides its programs through various formats and channels, including free workshops, basic training classes, forums, telephone mentoring, one-on-one mentoring, coaching, and e-learning. The company was founded in 1996 and is headquartered in Cape Coral, Florida.

About Vasta Platform (Get Rating)

Vasta Platform Limited, an education company, provides educational and digital solutions to private schools operating in the K-12 educational sector in Brazil. The company operates in two segments, Content & EdTech Platform and Digital Platform. The Content & EdTech Platform segment offers core and complementary educational content solutions through digital and printed content, including textbooks, learning systems, and other complimentary educational services. The Digital Platform segment provides physical and digital e-commerce platform, and other digital services. As of March 31, 2020, its network of business-to-business customers consisted of 4,167 partner schools; and enrolled students included 1,311 thousand. The company also sells textbooks, as well as operates an e-commerce channel for the sale of educational content, such as textbooks, school materials, stationery, and others; and offers university admission preparatory exam courses. It serves various stakeholders, including students, parents, educators, administrators, and private school owners. The company was founded in 1966 and is based in São Paulo, Brazil.

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