ATA (AACG) vs. Its Rivals Head-To-Head Contrast

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

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	-3.20%	-28.46%	2.44%

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
ATA	$268.11 million	-$6.87 million	-3.10
ATA Competitors	$3.60 billion	$219.82 million	11.47

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.

Insider & Institutional Ownership

0.7% of ATA shares are held by institutional investors. Comparatively, 49.0% of shares of all “Diversified Consumer Services” companies are held by institutional investors. 52.9% of ATA shares are held by company insiders. Comparatively, 19.5% of shares of all “Diversified Consumer Services” companies are held by company 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.

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 peers have a beta of 0.47, meaning that their average stock price is 53% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for ATA and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ATA	1	0	0	0	1.00
ATA Competitors	1436	3428	5281	196	2.41

As a group, “Diversified Consumer Services” companies have a potential upside of 61.12%. Given ATA’s peers stronger consensus rating and higher possible upside, analysts plainly believe ATA has less favorable growth aspects than its peers.

Summary

ATA peers beat ATA on 9 of the 13 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.