Reviewing QuantaSing Group (NASDAQ:QSG) & ATA (NASDAQ:AACG)

QuantaSing Group (NASDAQ:QSGGet Free Report) and ATA (NASDAQ:AACGGet Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Volatility & Risk

QuantaSing Group has a beta of -0.99, suggesting that its share price is 199% less volatile than the S&P 500. Comparatively, ATA has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for QuantaSing Group and ATA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QuantaSing Group 0 0 1 0 3.00
ATA 0 0 0 0 0.00

QuantaSing Group currently has a consensus target price of $9.52, indicating a potential upside of 7.81%. Given QuantaSing Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe QuantaSing Group is more favorable than ATA.

Earnings and Valuation

This table compares QuantaSing Group and ATA”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
QuantaSing Group $522.26 million 0.87 $53.05 million $1.11 7.95
ATA $36.72 million 1.84 -$4.95 million ($0.10) -21.20

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

Profitability

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

Net Margins Return on Equity Return on Assets
QuantaSing Group 14.27% 68.92% 28.97%
ATA -9.29% -38.69% -5.70%

Insider and Institutional Ownership

0.7% of ATA shares are held by institutional investors. 52.9% of ATA shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

QuantaSing Group beats ATA on 10 of the 14 factors compared between the two stocks.

About QuantaSing Group

(Get Free Report)

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.

About ATA

(Get Free Report)

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.

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