ATIF (NASDAQ:ZBAI – Get Free Report) and Franklin Covey (NYSE:FC – Get Free Report) are both small-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Profitability
This table compares ATIF and Franklin Covey’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ATIF | N/A | -59.44% | -54.65% |
| Franklin Covey | -0.54% | 9.98% | 2.86% |
Valuation and Earnings
This table compares ATIF and Franklin Covey”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ATIF | $1.20 million | 5.61 | -$4.60 million | ($7.19) | -0.97 |
| Franklin Covey | $267.07 million | 0.91 | $3.07 million | ($0.12) | -175.60 |
Franklin Covey has higher revenue and earnings than ATIF. Franklin Covey is trading at a lower price-to-earnings ratio than ATIF, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
ATIF has a beta of -0.31, indicating that its stock price is 131% less volatile than the S&P 500. Comparatively, Franklin Covey has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.
Insider and Institutional Ownership
69.9% of Franklin Covey shares are owned by institutional investors. 32.2% of ATIF shares are owned by company insiders. Comparatively, 15.2% of Franklin Covey shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations for ATIF and Franklin Covey, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ATIF | 1 | 0 | 0 | 0 | 1.00 |
| Franklin Covey | 1 | 0 | 2 | 0 | 2.33 |
Franklin Covey has a consensus target price of $24.50, indicating a potential upside of 16.27%. Given Franklin Covey’s stronger consensus rating and higher possible upside, analysts clearly believe Franklin Covey is more favorable than ATIF.
Summary
Franklin Covey beats ATIF on 10 of the 14 factors compared between the two stocks.
About ATIF
ATIF Holdings Ltd. engages in the provision of financial consulting services. It is also involved in merger and acquisition business advisory, post-listing compliance, management support, and related services. The company was founded on January 5, 2015 and is headquartered in Lake Forest, CA.
About Franklin Covey
Franklin Covey Co. provides training and consulting services in the areas of execution, sales performance, productivity, customer loyalty, and educational improvement for organizations and individuals worldwide. The company operates through Direct Offices, International Licensees, and Education Practice segments. It also provides a suite of individual-effectiveness and leadership-development training and products. In addition, the company operates Strive platform, a learning deployment platform; Impact platform that helps automate implementation of learning initiatives; All Access Pass, a subscription platform that enables improved deployment of content, services, technology, and metrics to deliver behavioral impact at scale; and Leader in Me, which provides access to digital versions of student leadership guides, leadership lessons, illustrated leadership stories, and other resources. Franklin Covey Co. was incorporated in 1983 and is headquartered in Salt Lake City, Utah.
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