Head to Head Comparison: Japan Tob (OTCMKTS:JAPAY) vs. ATA (NASDAQ:AACG)

ATA (NASDAQ:AACG) and Japan Tob (OTCMKTS:JAPAY) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

0.7% of ATA shares are owned by institutional investors. 52.9% of ATA shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ATA	1	0	0	0	1.00
Japan Tob	1	0	1	1	2.67

Japan Tob has a consensus price target of $17.00, indicating a potential downside of 2.19%. Given Japan Tob’s stronger consensus rating and higher possible upside, analysts clearly believe Japan Tob is more favorable than ATA.

Profitability

This table compares ATA and Japan Tob’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ATA	N/A	N/A	N/A
Japan Tob	N/A	N/A	N/A

Volatility & Risk

ATA has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, Japan Tob has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500.

Valuation & Earnings

This table compares ATA and Japan Tob”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ATA	$38.34 million	0.81	-$6.87 million	($0.20)	-4.54
Japan Tob	$23.20 billion	2.66	$3.42 billion	$1.41	12.33

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

Summary

Japan Tob beats ATA on 9 of the 12 factors compared between the two stocks.

About ATA

ATA Creativity Global, formerly known as ATA Inc., is a China-based provider of international education services focused primarily on creativity and art education. The company offers programs designed to help students develop skills in areas such as visual arts, design, digital media, and other creative disciplines. Its services have included portfolio development, art and design instruction, test preparation, and education counseling for students seeking admission to colleges and universities in China and overseas.

About Japan Tob

Japan Tobacco Inc. is a Japanese company whose principal business is the manufacture and sale of tobacco products. Its portfolio includes cigarette brands such as Winston and Mevius, and the company also offers reduced-risk products and other tobacco-related products. Through its international operations, the company sells tobacco products in markets around the world. Japan Tobacco traces its origins to Japan’s government tobacco monopoly, established in 1898, and became a public company in 1985.