ATA (NASDAQ:ATAI) and Sunlands Online Education Group (NYSE:STG) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Valuation and Earnings

This table compares ATA and Sunlands Online Education Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ATA $190,000.00 279.07 $124.34 million N/A N/A
Sunlands Online Education Group $287.10 million 0.85 -$134.83 million ($0.86) -2.63

ATA has higher earnings, but lower revenue than Sunlands Online Education Group.

Analyst Ratings

This is a summary of recent ratings for ATA and Sunlands Online Education Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ATA 0 0 0 0 N/A
Sunlands Online Education Group 1 1 0 0 1.50

Profitability

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

Net Margins Return on Equity Return on Assets
ATA 29,025.97% -52.27% -42.24%
Sunlands Online Education Group -37.32% N/A -21.44%

Insider and Institutional Ownership

1.4% of ATA shares are held by institutional investors. Comparatively, 26.3% of Sunlands Online Education Group 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 company is poised for long-term growth.

Risk & Volatility

ATA has a beta of 2.13, suggesting that its share price is 113% more volatile than the S&P 500. Comparatively, Sunlands Online Education Group has a beta of 2.63, suggesting that its share price is 163% more volatile than the S&P 500.

Summary

Sunlands Online Education Group beats ATA on 5 of the 9 factors compared between the two stocks.

ATA Company Profile

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.

Sunlands Online Education Group Company Profile

Sunlands Technology Group, through its subsidiaries, provides online education services in the People’s Republic of China. The company offers various degree- and diploma-oriented post-secondary courses, including preparation courses for the self-taught higher education examination (STE) for learners pursuing associate diplomas or bachelor’s degrees, as well as for the entrance examinations of master of business administration programs. Its STE courses cover 18 majors, including Chinese language and literature, law, pre-school education, project management, marketing, English, human resource management, business administration, business management, modern corporate governance, finance, financial management, advertising, accounting, energy management, administrative management, international trade, and computer information management. The company also provides professional certification preparation course offerings that cover various industries and professions, such as accounting, human resources, teaching, and finance. As of December 31, 2017, it had approximately 1,750 self-developed learning outcome trees covering 123,000 knowledge points. The company was formerly known as Sunlands Online Education Group. Sunlands Technology Group was founded in 2003 and is headquartered in Beijing, the People’s Republic of China.

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