ATA (NASDAQ:AACG) and Classover (NASDAQ:KIDZ) Head to Head Review

Classover (NASDAQ:KIDZ) and ATA (NASDAQ:AACG) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Classover	-356.34%	-281.13%	-60.23%
ATA	-17.96%	-90.86%	-10.89%

Volatility and Risk

Classover has a beta of -0.66, suggesting that its stock price is 166% less volatile than the S&P 500. Comparatively, ATA has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Insider and Institutional Ownership

74.7% of Classover shares are owned by institutional investors. Comparatively, 0.7% of ATA shares are owned by institutional investors. 2.5% of Classover shares are owned by company insiders. Comparatively, 52.9% of ATA shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Classover	$3.37 million	0.10	-$7.05 million	($73.20)	-0.01
ATA	$38.34 million	0.99	-$6.87 million	($0.20)	-4.42

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

Analyst Ratings

This is a summary of current ratings and target prices for Classover and ATA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Classover	1	0	0	0	1.00
ATA	1	0	0	0	1.00

Summary

ATA beats Classover on 9 of the 11 factors compared between the two stocks.

About Classover

Classover is an online enrichment program in Manhattan, New York that offers over 20 courses taught by certified instructors. It caters to children aged 4 to 17, providing personalized attention and a supportive learning environment. Classover is recognized worldwide by over 20,000 parents and children in more than 34 countries. Classover’s proprietary course platform app provides exclusive benefits to students, including access to class schedules, remaining class credits, and class history. As an official test center for the Math Kangaroo Competition and other high-value competition channels, Classover is certified to provide high-quality teaching services to help students improve their academic performance. The school’s WASC certification is a testament to its teaching quality, meeting high standards in student satisfaction, teacher qualifications, classroom environment, and course content quality. Classover limits class size to six students to ensure personalized attention, delivering over 330,000 hours of online classes with a course renewal rate exceeding 90%. The platform has helped students win competition awards, making it a recognized “The Best Parenting Tool” in the parent community.

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.