Head-To-Head Review: Service Corporation International (NYSE:SCI) vs. ATA (NASDAQ:AACG)

ATA (NASDAQ:AACG) and Service Corporation International (NYSE:SCI) 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.

Valuation & Earnings

This table compares ATA and Service Corporation International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ATA	$38.34 million	0.98	-$6.87 million	($0.20)	-4.36
Service Corporation International	$4.31 billion	2.60	$542.61 million	$3.83	21.42

Service Corporation International has higher revenue and earnings than ATA. ATA is trading at a lower price-to-earnings ratio than Service Corporation International, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for ATA and Service Corporation International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ATA	1	0	0	0	1.00
Service Corporation International	0	1	3	0	2.75

Service Corporation International has a consensus price target of $100.67, indicating a potential upside of 22.69%. Given Service Corporation International’s stronger consensus rating and higher probable upside, analysts clearly believe Service Corporation International is more favorable than ATA.

Risk and Volatility

ATA has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Service Corporation International has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.

Insider & Institutional Ownership

0.7% of ATA shares are owned by institutional investors. Comparatively, 85.5% of Service Corporation International shares are owned by institutional investors. 52.9% of ATA shares are owned by company insiders. Comparatively, 3.4% of Service Corporation International 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.

Profitability

This table compares ATA and Service Corporation International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ATA	-17.96%	-90.86%	-10.89%
Service Corporation International	12.30%	34.38%	2.91%

Summary

Service Corporation International beats ATA on 12 of the 14 factors compared between the two stocks.

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.

About Service Corporation International

Service Corp. International engages in the provision of funeral goods and services. It operates through the Funeral and Cemetery segments. The Funeral segment offers services related to cremations, including the use of home facilities and motor vehicles, arranging and directing services, removal, preparation, embalming, memorialization, and catering. The Cemetery segment provides property interment rights, including lawn crypts, mausoleum spaces, niches, and interment options. The company was founded by Robert L. Waltrip in July 1962 and is headquartered in Houston, TX.