Reviewing Color Star Technology (NASDAQ:ADD) and QuantaSing Group (NASDAQ:QSG)

Color Star Technology (NASDAQ:ADD) and QuantaSing Group (NASDAQ:QSG) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

This table compares Color Star Technology and QuantaSing Group’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Color Star Technology	$16.52 million	0.22	-$37.85 million	N/A	N/A
QuantaSing Group	$424.94 million	0.45	-$14.97 million	$0.45	7.49

QuantaSing Group has higher revenue and earnings than Color Star Technology.

Insider & Institutional Ownership

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

Analyst Ratings

This is a summary of current ratings and price targets for Color Star Technology and QuantaSing Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Color Star Technology	0	0	0	0	N/A
QuantaSing Group	0	1	1	0	2.50

QuantaSing Group has a consensus target price of $9.85, suggesting a potential upside of 192.28%. Given QuantaSing Group’s higher possible upside, analysts clearly believe QuantaSing Group is more favorable than Color Star Technology.

Risk and Volatility

Color Star Technology has a beta of 1.99, suggesting that its share price is 99% more volatile than the S&P 500. Comparatively, QuantaSing Group has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Profitability

This table compares Color Star Technology and QuantaSing Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Color Star Technology	N/A	N/A	N/A
QuantaSing Group	5.78%	83.40%	16.31%

Summary

QuantaSing Group beats Color Star Technology on 8 of the 11 factors compared between the two stocks.

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.

About QuantaSing Group

QuantaSing Group Limited provides online learning services in the People's Republic of China. The company offers online courses, including financial literacy, short-video production, personal well-being, electronic keyboard, and meditation courses. It also offers marketing and enterprise talent management services to enterprise customers. In addition, the company provides online and literacy course to adult learners under various brands, including QiNiu, JiangZhen, and QianChi. QuantaSing Group Limited was founded in 2019 and is headquartered in Beijing, the People's Republic of China.