Critical Survey: ATA (NASDAQ:AACG) versus China Bilingual Technology & Education Group (OTCMKTS:CATG)

China Bilingual Technology & Education Group (OTCMKTS:CATG) and ATA (NASDAQ:AACG) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Risk and Volatility

China Bilingual Technology & Education Group has a beta of -2.25, suggesting that its stock price is 325% less volatile than the S&P 500. Comparatively, ATA has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Insider & Institutional Ownership

0.7% of ATA shares are owned by institutional investors. 52.9% of ATA shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares China Bilingual Technology & Education Group and ATA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Bilingual Technology & Education Group	N/A	N/A	N/A
ATA	-3.08%	-13.12%	-1.88%

Earnings and Valuation

This table compares China Bilingual Technology & Education Group and ATA”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Bilingual Technology & Education Group	N/A	N/A	N/A	N/A	N/A
ATA	$36.72 million	0.68	-$4.95 million	($0.02)	-39.25

China Bilingual Technology & Education Group has higher earnings, but lower revenue than ATA.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for China Bilingual Technology & Education Group and ATA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Bilingual Technology & Education Group	0	0	0	0	0.00
ATA	1	0	0	0	1.00

Summary

ATA beats China Bilingual Technology & Education Group on 5 of the 8 factors compared between the two stocks.

About China Bilingual Technology & Education Group

Capstone Technologies Group, Inc. intends to operate as a holding company. It engages in customer data platform market, and provides software design, development, and other services. The company was formerly known as China Bilingual Technology & Education Group Inc. and changed its name to Capstone Technologies Group, Inc. in April 2017. Capstone Technologies Group, Inc. is based in Charlotte, North Carolina.

About ATA

ATA Creativity Global, together with its subsidiaries, provides educational services to individual students through its training center network in China and internationally. Its educational services include portfolio training, research-based learning, overseas study counselling, in-school art classes through cooperation with high schools and training organizations, foreign language training services, junior art education, and other related educational services to its students. The company also offers online courses for students. It provides its services through partnership with sales channels, internet and mobile advertisement, word of mouth referral, and marketing events and activities. The company was formerly known as ATA Inc. and changed its name to ATA Creativity Global in September 2019. ATA Creativity Global was founded in 1999 and is headquartered in Hefei, China.