The Advisory Board (NASDAQ: ABCO) and Lifelock (NYSE:LOCK) are both mid-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.
This table compares The Advisory Board and Lifelock’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Advisory Board||9.24%||12.31%||3.33%|
This is a breakdown of current ratings and recommmendations for The Advisory Board and Lifelock, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Advisory Board||0||11||3||0||2.21|
The Advisory Board presently has a consensus target price of $51.44, suggesting a potential downside of 3.67%. Lifelock has a consensus target price of $24.00, suggesting a potential upside of 0.04%. Given Lifelock’s higher possible upside, analysts clearly believe Lifelock is more favorable than The Advisory Board.
Earnings and Valuation
This table compares The Advisory Board and Lifelock’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|The Advisory Board||$803.42 million||2.71||$91.23 million||$1.78||30.00|
The Advisory Board has higher revenue and earnings than Lifelock. The Advisory Board is trading at a lower price-to-earnings ratio than Lifelock, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
99.1% of The Advisory Board shares are owned by institutional investors. Comparatively, 88.8% of Lifelock shares are owned by institutional investors. 4.7% of The Advisory Board shares are owned by insiders. Comparatively, 13.9% of Lifelock shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
The Advisory Board beats Lifelock on 6 of the 10 factors compared between the two stocks.
About The Advisory Board
The Advisory Board Company is a provider of software and solutions to the healthcare and higher education industries. The Company offers subscription-based membership programs, software and data-enabled services. All of its programs are rooted in best practices and extends across four areas, including Best practices research, Technology, Data-enabled services and Consulting services. The best practices research and insight programs provide the foundation for all of its other programs. The Company offers technology analytics programs anchored by cloud-based software applications that surface performance improvement opportunities to accelerate progress. Through its consulting services, the Company provides on-the-ground support for performance improvement initiatives, as well as best practice professional management of areas of the hospital or medical group. The Company’s data-enabled services are primarily focused in the area of enrollment management.
LifeLock, Inc. provides proactive identity theft protection services for consumers and consumer risk management services for enterprises. The Company monitors certain identity-related events, such as new account openings and credit-related applications. It operates in two segments: consumer segment and an enterprise segment. The Company’s LifeLock ecosystem combines data repositories of personally identifiable information and consumer transactions, predictive analytics and a technology platform. It applies predictive analytics to the data in its repositories to provide its members and enterprise customers’ actionable intelligence that helps protect against identity theft and identity fraud. It offers its consumer services on a monthly or annual subscription basis. It provides consumer risk management services, including delivering its on-demand identity risk, identity-authentication and credit information about consumers to its enterprise customers in the daily transaction flows.
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