Head-To-Head Survey: ATA (NASDAQ:AACG) and Lixiang Education (NASDAQ:LXEH)

ATA (NASDAQ:AACG) and Lixiang Education (NASDAQ:LXEH) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Volatility & Risk

ATA has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Lixiang Education has a beta of -0.46, suggesting that its stock price is 146% less volatile than the S&P 500.

Profitability

This table compares ATA and Lixiang Education’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%
Lixiang Education	N/A	N/A	N/A

Institutional and Insider Ownership

0.7% of ATA shares are owned by institutional investors. Comparatively, 0.5% of Lixiang Education shares are owned by institutional investors. 52.9% of ATA shares are owned by company insiders. Comparatively, 75.0% of Lixiang Education shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for ATA and Lixiang Education, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ATA	1	0	0	0	1.00
Lixiang Education	1	0	0	0	1.00

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ATA	$38.34 million	1.29	-$6.87 million	($0.20)	-5.75
Lixiang Education	$4.41 million	0.04	-$17.43 million	N/A	N/A

ATA has higher revenue and earnings than Lixiang Education.

Summary

ATA beats Lixiang Education on 5 of the 9 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 Lixiang Education

Lixiang Education Holding Co., Ltd. provides primary and middle school education services from grade 1 to grade 9 in the People's Republic of China. As of December 31, 2020, the company operated two campuses, including Baiyun Campus and Yijing Campus. It also engages in the operation of food procurement. The company was formerly known as Lianwai Education Group Limited and changed its name to Lixiang Education Holding Co., Ltd. in May 26, 2020. The company was founded in 2001 and is headquartered in Lishui, the People's Republic of China.