Contrasting Stride (NYSE:LRN) and Color Star Technology (NASDAQ:ADD)

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

Analyst Ratings

This is a breakdown of recent recommendations for Color Star Technology and Stride, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Color Star Technology	0	0	0	0	N/A
Stride	0	2	5	0	2.71

Stride has a consensus target price of $90.17, indicating a potential downside of 0.99%. Given Stride’s higher possible upside, analysts clearly believe Stride is more favorable than Color Star Technology.

Institutional and Insider Ownership

3.4% of Color Star Technology shares are owned by institutional investors. Comparatively, 98.2% of Stride shares are owned by institutional investors. 38.9% of Color Star Technology shares are owned by company insiders. Comparatively, 2.8% of Stride shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Color Star Technology has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500. Comparatively, Stride has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500.

Valuation and Earnings

This table compares Color Star Technology and Stride”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Color Star Technology	$2.83 million	0.95	-$37.85 million	N/A	N/A
Stride	$2.11 billion	1.87	$204.18 million	$4.26	21.38

Stride has higher revenue and earnings than Color Star Technology.

Profitability

This table compares Color Star Technology and Stride’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
Stride	11.38%	21.76%	12.88%

Summary

Stride beats Color Star Technology on 9 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 Stride

Stride, Inc., a technology-based education service company, engages in the provision of proprietary and third-party online curriculum, software systems, and educational services in the United States and internationally. Its technology-based products and services enable clients to attract, enroll, educate, track progress, support, and facilitate individualized learning for students. The company offers integrated package of systems, services, products, and professional expertise to support a virtual or blended public school; software and services to schools and school districts; individual online courses and supplemental educational products; and products and services for the general education market focused on subjects, including math, English, science, and history for kindergarten through twelfth grade students. It also provides career learning products and services that are focused on developing skills to enter in industries, including information technology, health care, and business; and operates tuition-based private schools. In addition, the company offers focused post-secondary career learning programs, which include skills training for software engineering, healthcare, and medical fields to adult learners under Galvanize, Tech Elevator, and MedCerts brand names, as well as provides staffing and talent development services to employers. It serves public and private schools, school districts, charter boards, consumers, employers, and government agencies. The company was formerly known as K12 Inc. and changed its name to Stride, Inc. in December 2020. Stride, Inc. was incorporated in 1999 and is headquartered in Reston, Virginia.