Head-To-Head Analysis: ATA (AACG) and Its Rivals

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

Valuation and Earnings

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

Institutional and Insider 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for ATA and its rivals, as reported by MarketBeat.

	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 rivals stronger consensus rating and higher probable upside, analysts clearly believe ATA has less favorable growth aspects than its rivals.

Profitability

This table compares ATA and its rivals’ 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%

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 rivals have a beta of 0.24, meaning that their average stock price is 76% less volatile than the S&P 500.

Summary

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

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.