Vasta Platform (NASDAQ:VSTA) & Futu (NASDAQ:FUTU) Head to Head Survey

Vasta Platform (NASDAQ:VSTA) and Futu (NASDAQ:FUTU) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares Vasta Platform and Futu’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vasta Platform	27.31%	1.53%	1.06%
Futu	49.63%	32.24%	5.33%

Valuation & Earnings

This table compares Vasta Platform and Futu”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vasta Platform	$1.74 billion	0.23	$90.19 million	$1.02	4.80
Futu	$2.94 billion	7.39	$1.46 billion	$10.28	15.06

Futu has higher revenue and earnings than Vasta Platform. Vasta Platform is trading at a lower price-to-earnings ratio than Futu, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

15.8% of Vasta Platform shares are held by institutional investors. 2.0% of Vasta Platform shares are held by company insiders. Comparatively, 35.2% of Futu shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Vasta Platform has a beta of -0.29, indicating that its stock price is 129% less volatile than the S&P 500. Comparatively, Futu has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Vasta Platform and Futu, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vasta Platform	2	1	0	0	1.33
Futu	0	2	5	2	3.00

Futu has a consensus target price of $209.17, suggesting a potential upside of 35.08%. Given Futu’s stronger consensus rating and higher probable upside, analysts clearly believe Futu is more favorable than Vasta Platform.

Summary

Futu beats Vasta Platform on 14 of the 15 factors compared between the two stocks.

About Vasta Platform

Vasta Platform Limited provides educational printed and digital solutions to private schools operating in the K-12 education sector in Brazil. The company offers digital and printed textbooks, teacher handbooks, exercise books, multidisciplinary subject books, and student evaluations; and PAR platform that allows schools to select their preferred books and materials and follow their own specific teaching methods. It also provides traditional learning systems under the Anglo, Pitágoras, Rede Cristã de Educação, Maxi Ético, Fibonacci, Mackenzie, and Amplia brands; ongoing training for educators; and services to partner schools, including consulting services for school management and the organization of events, and a proprietary and differentiated evaluation system for partner schools and their students. In addition, the company offers Plurall that provides a digital learning experience and allows for tailor-made adjustments for each school; Plurall Maestro that develops digital solutions to help educators in planning and conducting classes; PROFS, a teacher training program; O Líder em Mim, a program with content, methodology, teaching material, and training to develop leadership; English Stars, an English educational platform; EduAll, a bilingual program to enhance its current solutions; Plurall Olímpico, a content for scientific competitions; MindMakers to develop leadership, collaboration, and persistence through multidisciplinary problem-solving exercises; Matific that provides interactive learning environments and adaptable worksheets; Plurall Store; Plurall Adapta for adaptive learning sessions; Plurall MeuProf to connect students with professors for private tutoring; Prepara to prepare students for external assessments; Leader in Me to develop socio-emotional competencies of K12 students; Education Systems, a structured teaching system for K12 students and teachers; and Prepara ENEM. Vasta Platform Limited was founded in 1966 and is based in São Paulo, Brazil.

About Futu

Futu Holdings Limited provides digitalized securities brokerage and wealth management product distribution service in Hong Kong and internationally. It offers online financial services, including securities and derivative trades brokerage, margin financing and fund distribution services through its Futubull and Moomoo digital platforms. The company also provides financial information and online community services; online wealth management services under the Money Plus brand name through its Futubull and moomoo platforms, which provides its client access to mutual funds, private funds, bonds, structured products, and other wealth management products; market data and information services; and NiuNiu Community, which serves as an open forum for users and clients to share insights, ask questions, and exchange ideas. Futu Holdings Limited was founded in 2007 and is headquartered in Sheung Wan, Hong Kong.