LAIX (NYSE:LAIX) and GP Strategies (NYSE:GPX) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Volatility & Risk

LAIX has a beta of 2.91, indicating that its share price is 191% more volatile than the S&P 500. Comparatively, GP Strategies has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Institutional & Insider Ownership

14.0% of LAIX shares are owned by institutional investors. Comparatively, 85.9% of GP Strategies shares are owned by institutional investors. 24.5% of GP Strategies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares LAIX and GP Strategies gross revenue, earnings per share and valuation.

GP Strategies has higher revenue and earnings than LAIX.

Analyst Recommendations

This is a summary of recent recommendations and price targets for LAIX and GP Strategies, as provided by MarketBeat.com.

LAIX presently has a consensus target price of $4.75, suggesting a potential downside of 25.78%. GP Strategies has a consensus target price of $19.75, suggesting a potential upside of 36.58%. Given GP Strategies stronger consensus rating and higher possible upside, analysts plainly believe GP Strategies is more favorable than LAIX.

Profitability

This table compares LAIX and GP Strategies net margins, return on equity and return on assets.

Summary

GP Strategies beats LAIX on 10 of the 12 factors compared between the two stocks.

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 GP Strategies

GP Strategies Corporation provides performance improvement and learning solutions worldwide. It operates through four segments: Learning Solutions, Professional & Technical Services, Sandy Training & Marketing, and Performance Readiness Solutions. The Learning Solutions segment delivers training, curriculum design and development, digital learning, system hosting, managed learning, and consulting services to electronics and semiconductors, healthcare, software, financial services, and other industries, as well as government agencies; and provides apprenticeship and vocational skills training services. The Professional & Technical Services segment offers training, consulting, engineering, and technical services, including lean consulting, emergency preparedness, safety and regulatory compliance, chemical demilitarization, and environmental services to the manufacturing, steel, pharmaceutical, energy, and petrochemical industries, as well as federal and state government agencies, and government contractors. The Sandy Training & Marketing segment provides custom product sales training to customer sales forces; and technical training services to automotive manufacturers and customers in other industries. The Performance Readiness Solutions segment offers performance and technology consulting services, such as platform adoption, end-user training, change and knowledge management, customer product training outsourcing, training content development, and sales enablement solutions; and organization performance solutions comprising leadership development training, strategy-through-implementation consulting services, and employee engagement tools and services to manufacturing, aerospace, healthcare, life sciences, consumer products, financial, telecommunications, and higher education industries, as well as government agencies. GP Strategies Corporation was founded in 1959 and is headquartered in Columbia, Maryland.

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LAIX (NYSE:LAIX) & GP Strategies (NYSE:GPX) Head to Head Review - Riverton Roll