ATA Inc. (AACG) vs Legacy Education Inc. (LGCY)

ATA Inc. and Legacy Education Inc. are both Education & Training Services companies. Legacy Education Inc. is the larger, with a market value of $112.9M against $27.0M — 4.2× the size. ATA Inc. has negative trailing earnings, so its P/E is not meaningful; Legacy Education Inc. trades at 12.1×. Legacy Education Inc. grew revenue faster over the last twelve months: 24.8% against 4.40%. Legacy Education Inc. has the higher net margin (11.4% vs −17.9%) and the higher return on invested capital (24.4% vs 0.00%). Across the 17 metrics below, Legacy Education Inc. leads on 14 and ATA Inc. on 3.

Valuation

Metric AACG LGCY Education & Training Services median
P/E n/m 12.12 12.09
P/S 0.52 1.39 0.80
P/B 4.37 2.11 1.39
Price to free cash flow n/m 41.59 7.31
EV/EBITDA n/m 7.15 6.36
EV/Sales 0.32 1.11 0.58
Earnings yield (31.75%) 8.25% 3.29%
Free cash flow yield (23.61%) 2.40% 3.03%

Profitability

Metric AACG LGCY Education & Training Services median
Gross margin 48.60% 46.39% 55.03%
Operating margin (23.91%) 14.75% 0.00%
Net margin (17.92%) 11.42% 1.77%
Free cash flow margin (12.30%) 3.35% 0.00%
Return on equity (88.74%) 19.49% 0.00%
Return on assets (11.36%) 12.37% 0.00%
Return on invested capital 0.00% 24.41% 0.00%

Growth

Metric AACG LGCY Education & Training Services median
Revenue growth (TTM) 4.40% 24.76% 5.84%
EPS growth (last fiscal year) (37.50%) 11.86% 14.71%
Revenue growth, 5-year CAGR 9.06% — 4.24%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric AACG LGCY Education & Training Services median
Debt to equity 0.96 0.00 0.05
Current ratio 0.32 3.70 1.37
Net debt to EBITDA 1.28 (1.81) (0.04)

Dividend

Metric AACG LGCY Education & Training Services median
Dividend yield — — 2.64%
Payout ratio — — 0.26

Size

Metric AACG LGCY Education & Training Services median
Market cap 26.96m 112.91m 59.54m

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