Analyzing Compass Group (OTCMKTS:CMPGY) & ATA (NASDAQ:AACG)

Compass Group (OTCMKTS:CMPGY) and ATA (NASDAQ:AACG) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

Risk and Volatility

Compass Group has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500. Comparatively, ATA has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Compass Group and ATA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compass Group	0	0	2	2	3.50
ATA	1	0	0	0	1.00

Valuation & Earnings

This table compares Compass Group and ATA”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compass Group	$46.07 billion	1.13	$1.87 billion	N/A	N/A
ATA	$38.34 million	1.02	-$6.87 million	($0.20)	-4.55

Compass Group has higher revenue and earnings than ATA.

Profitability

This table compares Compass Group and ATA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Compass Group	N/A	N/A	N/A
ATA	-17.96%	-90.86%	-10.89%

Insider & Institutional Ownership

0.0% of Compass Group shares are owned by institutional investors. Comparatively, 0.7% of ATA shares are owned by institutional investors. 0.0% of Compass Group shares are owned by company insiders. Comparatively, 52.9% of ATA shares are owned by company 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.

Summary

Compass Group beats ATA on 9 of the 12 factors compared between the two stocks.

About Compass Group

Compass Group PLC operates as a food and support services company in North America, Europe, and internationally. The company offers support services, such as cleaning in hospitals; reception services at corporate headquarters; managing remote camps; grounds and facilities services at schools and universities; and others. It serves business and industry; healthcare and senior living market; education; sports and leisure; and defense, offshore, and remote sectors. Compass Group PLC was founded in 1941 and is based in Chertsey, the United Kingdom.

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.