TAL Education Group (NYSE:TAL) and ATA Creativity Global (NASDAQ:AACG) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.
Insider and Institutional Ownership
60.2% of TAL Education Group shares are owned by institutional investors. Comparatively, 0.1% of ATA Creativity Global shares are owned by institutional investors. 1.8% of TAL Education Group shares are owned by company insiders. Comparatively, 52.9% of ATA Creativity Global shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares TAL Education Group and ATA Creativity Global’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TAL Education Group||$3.27 billion||11.40||-$110.19 million||($0.19)||-346.37|
|ATA Creativity Global||$14.04 million||2.10||-$17.56 million||N/A||N/A|
ATA Creativity Global has lower revenue, but higher earnings than TAL Education Group.
This is a summary of current recommendations for TAL Education Group and ATA Creativity Global, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TAL Education Group||0||1||10||0||2.91|
|ATA Creativity Global||0||0||0||0||N/A|
TAL Education Group currently has a consensus target price of $79.13, suggesting a potential upside of 20.24%. Given TAL Education Group’s higher possible upside, equities analysts plainly believe TAL Education Group is more favorable than ATA Creativity Global.
Risk and Volatility
TAL Education Group has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500. Comparatively, ATA Creativity Global has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.
This table compares TAL Education Group and ATA Creativity Global’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TAL Education Group||0.15%||0.21%||0.09%|
|ATA Creativity Global||-66.01%||-37.42%||-16.01%|
TAL Education Group beats ATA Creativity Global on 9 of the 12 factors compared between the two stocks.
TAL Education Group Company Profile
TAL Education Group provides K-12 after-school tutoring services in the People's Republic of China. The company offers tutoring services to K-12 students covering various academic subjects, including mathematics, physics, chemistry, biology, history, geography, political science, English, and Chinese. It also provides tutoring services primarily through small classes under the Xueersi, Mobby, and Firstleap brand names; personalized premium services under Izhikang name. In addition, the company operates jzb.com, an online education platform that serves as a gateway for online courses offered through xueersi.com; and other Websites for specific topics and offerings, such as college entrance examinations, high school entrance examinations, graduate school entrance examinations, preschool education, and raising infants and toddlers, as well as mathematics, English, and Chinese composition. Further, it operates mmbang.com and the Mama Bang app, an online platform focusing on children, baby, and maternity market; and provides consulting services for overseas studies under the Shunshun Liuxue name, as well as tutoring services for students aged two through twelve under the Mobby brand. Additionally, the company offers education and management consulting, investment management and consulting services; develops and sells software and networks, as well as related consulting services; and sells educational materials. As of February 29, 2020, its educational network included 871 learning centers and 767 service centers in 69 cities throughout China and one city in the United States. The company was founded in 2003 and is headquartered in Beijing, the People's Republic of China.
ATA Creativity Global Company Profile
ATA Creativity Global, together with its subsidiaries, provides educational services to individual students through its training center network in China. The company's educational services include portfolio training, educational travel, overseas study counseling, and other educational services. It also offers online courses for students. 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 based in Beijing, China.
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