Analyzing ATA (NASDAQ:AACG) & Everybody Loves Languages (OTCMKTS:LMDCF)

Everybody Loves Languages (OTCMKTS:LMDCF) and ATA (NASDAQ:AACG) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Institutional & Insider Ownership

0.7% of ATA shares are owned by institutional investors. 52.9% of ATA shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Everybody Loves Languages and ATA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Everybody Loves Languages	9.89%	7.93%	6.72%
ATA	-3.08%	-13.12%	-1.88%

Valuation and Earnings

This table compares Everybody Loves Languages and ATA”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everybody Loves Languages	$1.78 million	N/A	$310,000.00	N/A	N/A
ATA	$36.72 million	0.77	-$4.95 million	($0.02)	-44.40

Everybody Loves Languages has higher earnings, but lower revenue than ATA.

Volatility and Risk

Everybody Loves Languages has a beta of -21.39, meaning that its share price is 2,239% less volatile than the S&P 500. Comparatively, ATA has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Everybody Loves Languages and ATA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everybody Loves Languages	0	0	0	0	0.00
ATA	1	0	0	0	1.00

Summary

ATA beats Everybody Loves Languages on 5 of the 9 factors compared between the two stocks.

About Everybody Loves Languages

Everybody Loves Languages Corp., an edtech language-learning and content development company, develops, markets, and supports a suite of English and other language learning solutions in the People's Republic of China. The company operates in two segments, Content-Based English Language Learning (License of Intellectual Property), and Online and Offline Language Learning. The Content-Based English Language Learning segment publishes print-based English language learning textbook programs. It co-publishes approximately 870 million units from library of program titles. The Online English Language Learning segment provides web-based educational technology language learning, training, and assessment solutions. It develops and markets libraries of online language learning resources and offers approximately 3,000 hours of interactive learning through various product offerings that include Winnie's World, English Academy, Campus, English for Success, AcadeMe English, AcadeMe Junior, and Master and Business English. The company markets its products in Latin America, Asia, Europe, and the United States through a network of distributors. The company was formerly known as Lingo Media Corporation and changed its name to Everybody Loves Languages Corp. in October 2022. Everybody Loves Languages Corp. is headquartered in Toronto, Canada.

About ATA

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.