ATA (NASDAQ:AACG – Get Free Report) and Compass Group (OTCMKTS:CMPGY – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.
Volatility & Risk
ATA has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Compass Group has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500.
Profitability
This table compares ATA and Compass Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ATA | -17.96% | -90.86% | -10.89% |
| Compass Group | N/A | N/A | N/A |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ATA | $38.34 million | 1.02 | -$6.87 million | ($0.20) | -4.55 |
| Compass Group | $46.07 billion | 1.13 | $1.87 billion | N/A | N/A |
Compass Group has higher revenue and earnings than ATA.
Institutional & Insider Ownership
0.7% of ATA shares are held by institutional investors. Comparatively, 0.0% of Compass Group shares are held by institutional investors. 52.9% of ATA shares are held by company insiders. Comparatively, 0.0% of Compass Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and target prices for ATA and Compass Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ATA | 1 | 0 | 0 | 0 | 1.00 |
| Compass Group | 0 | 0 | 2 | 2 | 3.50 |
Summary
Compass Group beats ATA on 9 of the 12 factors compared between the two stocks.
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.
About Compass Group
Compass Group PLC operates as a food and support services company in North America, Europe, and internationally. The company offers support services, such as cleaning in hospitals; reception services at corporate headquarters; managing remote camps; grounds and facilities services at schools and universities; and others. It serves business and industry; healthcare and senior living market; education; sports and leisure; and defense, offshore, and remote sectors. Compass Group PLC was founded in 1941 and is based in Chertsey, the United Kingdom.
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