Comparing Color Star Technology (NASDAQ:ADD) and Grand Canyon Education (NASDAQ:LOPE)

Grand Canyon Education (NASDAQ:LOPE) and Color Star Technology (NASDAQ:ADD) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.

Institutional and Insider Ownership

94.2% of Grand Canyon Education shares are owned by institutional investors. Comparatively, 3.4% of Color Star Technology shares are owned by institutional investors. 2.0% of Grand Canyon Education shares are owned by insiders. Comparatively, 38.9% of Color Star Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Grand Canyon Education and Color Star Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grand Canyon Education	21.66%	31.81%	24.00%
Color Star Technology	N/A	N/A	N/A

Earnings and Valuation

This table compares Grand Canyon Education and Color Star Technology’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grand Canyon Education	$960.90 million	4.33	$204.99 million	$7.15	19.57
Color Star Technology	$16.52 million	0.21	-$37.85 million	N/A	N/A

Grand Canyon Education has higher revenue and earnings than Color Star Technology.

Risk and Volatility

Grand Canyon Education has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Color Star Technology has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Grand Canyon Education and Color Star Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grand Canyon Education	0	0	3	0	3.00
Color Star Technology	0	0	0	0	N/A

Grand Canyon Education currently has a consensus target price of $165.00, suggesting a potential upside of 17.93%. Given Grand Canyon Education’s higher possible upside, research analysts clearly believe Grand Canyon Education is more favorable than Color Star Technology.

Summary

Grand Canyon Education beats Color Star Technology on 9 of the 11 factors compared between the two stocks.

About Grand Canyon Education

Grand Canyon Education, Inc. provides education services to colleges and universities in the United States. It offers technology services, including learning management system, internal administration, infrastructure, and support services; academic services, such as program and curriculum, faculty and related training and development, class scheduling, and skills and simulation lab sites; and counseling services and support services comprising admission, financial aid, and field experience and other counseling services. The company also offers marketing and communication services that include lead acquisition, digital communications strategy, brand identity, media planning and strategy, video, business intelligence and data science, and market research services; and back-office services consisting of finance and accounting, human resources, audit, and procurement services. In addition, it provides education services to 25 university partners. Grand Canyon Education, Inc. was founded in 1949 and is headquartered in Phoenix, Arizona.

About Color Star Technology

Color Star Technology Co., Ltd., an entertainment and education company, provides online entertainment performances and music education services in the United States and China. The company operates Color World, an online platform of curriculum that includes music, sports, animation, painting and calligraphy, film and television, life skills, etc. Its Color World platform provides celebrity lectures, celebrity concert videos, celebrity peripheral products, and artist interactive communication services. The company was formerly known as Huitao Technology Co., Ltd. and changed its name to Color Star Technology Co., Ltd. in May 2020. The company was founded in 2002 and is based in New York, New York.