Reviewing ATA (NASDAQ:ATAI) & GSX Techedu (NASDAQ:GSX)

GSX Techedu (NYSE:GSX) and ATA (NASDAQ:ATAI) are both business services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for GSX Techedu and ATA, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GSX Techedu 0 0 1 0 3.00
ATA 0 0 0 0 N/A

GSX Techedu currently has a consensus price target of $13.00, suggesting a potential upside of 15.35%. Given GSX Techedu’s higher probable upside, research analysts plainly believe GSX Techedu is more favorable than ATA.

Earnings and Valuation

This table compares GSX Techedu and ATA’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GSX Techedu N/A N/A N/A N/A N/A
ATA $190,000.00 337.80 $124.34 million N/A N/A

ATA has higher revenue and earnings than GSX Techedu.

Profitability

This table compares GSX Techedu and ATA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GSX Techedu N/A N/A N/A
ATA 29,025.97% -52.27% -42.24%

Insider and Institutional Ownership

1.6% of ATA shares are owned by institutional investors. 52.9% of ATA shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

About GSX Techedu

GSX Techedu Inc. operates as an online education company in the People's Republic of China. The company provides online K-12 large-class after-school tutoring services. It offers English courses for children in kindergarten; and courses that help children in grade one through grade seven. The company also provides foreign language courses, including English, Japanese, and Korean, as well as English test preparation courses for students taking post-graduate entrance exams in China; and professional courses primarily for working adults preparing for professional qualification exams comprising teacher's qualification, the Chartered Financial Analyst designation, fund qualification, and securities qualification exams. In addition, it offers personal interest courses, such as yoga, fashion, guitar, and Chinese calligraphy. Further, the company provides other courses, including offline business consulting courses, which target principals and other officers of private education institutions who want to enhance management skills; and operate Weishi, an interactive learning platform on Weixin. As of March 31, 2019, it had 169 instructors and 522 tutors. The company was formerly known as BaiJiaHuLian Group Holdings Limited and changed its name to GSX Techedu Inc. in January 2019. GSX Techedu Inc. was founded in 2014 and is headquartered in Beijing, China. GSX Techedu Inc. is a subsidiary of Ebetter International Group Limited.

About ATA

ATA Inc., through its subsidiaries, provides computer-based testing services in the People's Republic of China. The company offers services for the creation and delivery of computer-based tests utilizing its test delivery platform and proprietary testing technologies that are used for professional licensure and certification tests in various industries, including IT services, banking, teaching, and insurance; and administrative services, such as test registration, scheduling, fee collection, and certification fulfillment. Its e-testing platform integrates various aspects of the test delivery process for computer-based tests, from test form compilation to test scoring and results analysis. The company also offers mobile test administration platform MTS for test administration; and EzTest, an online self-service testing platform that provides testing management and delivery functions for the test delivery organizations and individuals, including item banking, test form composition, test delivery, online proctoring, and test result analysis. In addition, it provides EzInterview, an online interview management platform to support the talent assessment and hiring process; and HR Select, an employee assessment solution that enables corporate human resources departments to test, benchmark, and analyze job applicants; and online education services. As of December 31, 2017, the company operated 3,344 authorized test centers. It serves professional associations, governmental agencies, and IT vendors, as well as individual online education services consumers. ATA Inc. was founded in 1999 and is headquartered in Beijing, the People's Republic of China.

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