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 $120.8M against $35.5M — 3.4× the size. ATA Inc. has negative trailing earnings, so its P/E is not meaningful; Legacy Education Inc. trades at 13.9×. Legacy Education Inc. grew revenue faster over the last twelve months: 32.1% against 4.40%. Legacy Education Inc. has the higher net margin (10.9% vs −17.9%) and the higher return on invested capital (24.5% 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 13.90 11.19
P/S 0.71 1.53 0.92
P/B 5.96 2.41 1.63
Price to free cash flow n/m 25.11 9.62
EV/EBITDA n/m 8.35 7.02
EV/Sales 0.51 1.26 0.82
Earnings yield (23.26%) 7.20% 3.17%
Free cash flow yield (17.29%) 3.98% 2.30%

Profitability

Metric AACG LGCY Education & Training Services median
Gross margin 48.60% 47.24% 54.64%
Operating margin (23.91%) 14.36% 0.00%
Net margin (17.92%) 10.89% 3.29%
Free cash flow margin (12.30%) 6.10% 0.00%
Return on equity (88.74%) 19.11% 0.00%
Return on assets (11.36%) 11.91% 0.00%
Return on invested capital 0.00% 24.48% 0.00%

Growth

Metric AACG LGCY Education & Training Services median
Revenue growth (TTM) 4.40% 32.10% 6.97%
EPS growth (last fiscal year) (37.50%) 11.32% —
Revenue growth, 5-year CAGR 9.06% — 4.27%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric AACG LGCY Education & Training Services median
Debt to equity 0.96 0.01 0.08
Current ratio 0.32 3.36 1.33
Net debt to EBITDA 1.28 (1.80) (0.15)

Dividend

Metric AACG LGCY Education & Training Services median
Dividend yield — — 1.13%
Payout ratio 0.00 — 0.00

Size

Metric AACG LGCY Education & Training Services median
Market cap 35.53m 120.81m 68.93m

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