Color Star Technology (NASDAQ:ADD) and QuantaSing Group (NASDAQ:QSG) Critical Review

Color Star Technology (NASDAQ:ADD) and QuantaSing Group (NASDAQ:QSG) are both small-cap business services companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Color Star Technology and QuantaSing Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Color Star Technology	0	0	0	0	N/A
QuantaSing Group	0	1	1	0	2.50

QuantaSing Group has a consensus target price of $9.85, indicating a potential upside of 179.83%. Given QuantaSing Group’s higher probable upside, analysts clearly believe QuantaSing Group is more favorable than Color Star Technology.

Profitability

This table compares Color Star Technology and QuantaSing Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Color Star Technology	N/A	N/A	N/A
QuantaSing Group	5.78%	83.40%	16.31%

Institutional & Insider Ownership

3.4% of Color Star Technology shares are held by institutional investors. 38.9% of Color Star Technology shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Color Star Technology and QuantaSing Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Color Star Technology	$16.52 million	0.22	-$37.85 million	N/A	N/A
QuantaSing Group	$424.94 million	0.47	-$14.97 million	$0.45	7.82

QuantaSing Group has higher revenue and earnings than Color Star Technology.

Risk & Volatility

Color Star Technology has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500. Comparatively, QuantaSing Group has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Summary

QuantaSing Group beats Color Star Technology on 8 of the 11 factors compared between the two stocks.

About Color Star Technology

Color Star Technology Co., Ltd., an entertainment and education company, provides online entertainment performances and music education services in the United States and China. The company operates Color World, an online platform of curriculum that includes music, sports, animation, painting and calligraphy, film and television, life skills, etc. Its Color World platform provides celebrity lectures, celebrity concert videos, celebrity peripheral products, and artist interactive communication services. The company was formerly known as Huitao Technology Co., Ltd. and changed its name to Color Star Technology Co., Ltd. in May 2020. The company was founded in 2002 and is based in New York, New York.

About QuantaSing Group

QuantaSing Group Limited provides online learning services in the People's Republic of China. The company offers online courses, including financial literacy, short-video production, personal well-being, electronic keyboard, and meditation courses. It also offers marketing and enterprise talent management services to enterprise customers. In addition, the company provides online and literacy course to adult learners under various brands, including QiNiu, JiangZhen, and QianChi. QuantaSing Group Limited was founded in 2019 and is headquartered in Beijing, the People's Republic of China.