Service Corporation International (NYSE:SCI – Get Free Report) and ATA (NASDAQ:AACG – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
Profitability
This table compares Service Corporation International and ATA’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Service Corporation International | 12.30% | 34.38% | 2.91% |
| ATA | -17.96% | -90.86% | -10.89% |
Analyst Ratings
This is a breakdown of recent recommendations for Service Corporation International and ATA, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Service Corporation International | 0 | 1 | 3 | 0 | 2.75 |
| ATA | 1 | 0 | 0 | 0 | 1.00 |
Institutional and Insider Ownership
85.5% of Service Corporation International shares are owned by institutional investors. Comparatively, 0.7% of ATA shares are owned by institutional investors. 3.4% of Service Corporation International shares are owned by insiders. Comparatively, 52.9% of ATA shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Service Corporation International and ATA”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Service Corporation International | $4.31 billion | 2.62 | $542.61 million | $3.83 | 21.64 |
| ATA | $38.34 million | 1.01 | -$6.87 million | ($0.20) | -4.50 |
Service Corporation International has higher revenue and earnings than ATA. ATA is trading at a lower price-to-earnings ratio than Service Corporation International, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Service Corporation International has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, ATA has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.
Summary
Service Corporation International beats ATA on 12 of the 14 factors compared between the two stocks.
About Service Corporation International
Service Corp. International engages in the provision of funeral goods and services. It operates through the Funeral and Cemetery segments. The Funeral segment offers services related to cremations, including the use of home facilities and motor vehicles, arranging and directing services, removal, preparation, embalming, memorialization, and catering. The Cemetery segment provides property interment rights, including lawn crypts, mausoleum spaces, niches, and interment options. The company was founded by Robert L. Waltrip in July 1962 and is headquartered in Houston, TX.
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.
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