Head to Head Comparison: ATA (AACG) and The Competition

ATA (NASDAQ:AACG) is one of 166 public companies in the “Diversified Consumer Services” industry, but how does it contrast to its competitors? We will compare ATA to similar companies based on the strength of its institutional ownership, profitability, risk, valuation, dividends, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings for ATA and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ATA	1	0	0	0	1.00
ATA Competitors	1426	3414	5257	193	2.41

As a group, “Diversified Consumer Services” companies have a potential upside of 61.55%. Given ATA’s competitors stronger consensus rating and higher possible upside, analysts plainly believe ATA has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares ATA and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ATA	$268.11 million	N/A	-3.46
ATA Competitors	$2.59 billion	$106.84 million	12.03

ATA’s competitors have higher revenue and earnings than ATA. ATA is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

ATA has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, ATA’s competitors have a beta of 0.24, meaning that their average stock price is 76% less volatile than the S&P 500.

Insider & Institutional Ownership

0.7% of ATA shares are held by institutional investors. Comparatively, 48.4% of shares of all “Diversified Consumer Services” companies are held by institutional investors. 52.9% of ATA shares are held by insiders. Comparatively, 19.8% of shares of all “Diversified Consumer Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares ATA and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ATA	N/A	N/A	N/A
ATA Competitors	-6.28%	-8.31%	3.54%

Summary

ATA competitors beat ATA on 8 of the 12 factors compared.

ATA Company Profile

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.