Analyzing Color Star Technology (NASDAQ:ADD) and Vitru (NASDAQ:VTRU)

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

Profitability

This table compares Color Star Technology and Vitru’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
Vitru	5.44%	10.95%	4.22%

Earnings and Valuation

This table compares Color Star Technology and Vitru’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Color Star Technology	$16.52 million	0.21	-$37.85 million	N/A	N/A
Vitru	$1.96 billion	0.16	$21.79 million	$0.27	33.59

Vitru has higher revenue and earnings than Color Star Technology.

Risk & Volatility

Color Star Technology has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500. Comparatively, Vitru has a beta of -0.08, suggesting that its share price is 108% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Color Star Technology and Vitru, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Color Star Technology	0	0	0	0	N/A
Vitru	0	0	0	0	N/A

Institutional and Insider Ownership

3.4% of Color Star Technology shares are owned by institutional investors. Comparatively, 74.5% of Vitru shares are owned by institutional investors. 38.9% of Color Star Technology shares are owned by insiders. Comparatively, 1.2% of Vitru shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Vitru beats Color Star Technology on 6 of the 9 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 Vitru

Vitru Limited, together with its subsidiaries, provides educational services in Brazil. The company operates through Digital Education Undergraduate Courses, Continuing Education Courses, and On-Campus Undergraduate Courses segments. It offers distance, on-site undergraduate, graduate, technical, and professional courses, as well as continuing education and preparatory courses. The company operates campuses, or via digital education through learning centers. In addition, it operates a platform that provides free content through an ecosystem that includes blogs, free preparatory courses, and social media profiles. The company offers its services under the UNIASSELVI and Unicesumar brand names. Vitru Limited was incorporated in 2020 and is based in Florianópolis, Brazil.