Reviewing ATA (AACG) & Its Competitors

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

Institutional & Insider Ownership

0.7% of ATA shares are owned by institutional investors. Comparatively, 49.0% of shares of all “Diversified Consumer Services” companies are owned by institutional investors. 52.9% of ATA shares are owned by insiders. Comparatively, 19.5% of shares of all “Diversified Consumer Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ATA	1	0	0	0	1.00
ATA Competitors	1432	3426	5275	196	2.41

As a group, “Diversified Consumer Services” companies have a potential upside of 64.30%. Given ATA’s peers stronger consensus rating and higher probable upside, analysts clearly believe ATA has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares ATA and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ATA	$38.34 million	-$6.87 million	-3.25
ATA Competitors	$3.24 billion	$219.82 million	11.89

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

Profitability

This table compares ATA and its peers’ 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	-3.43%	-28.38%	2.46%

Volatility and Risk

ATA has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, ATA’s peers have a beta of 0.47, suggesting that their average stock price is 53% less volatile than the S&P 500.

Summary

ATA peers beat ATA on 9 of the 13 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.