Critical Comparison: Color Star Technology (NASDAQ:ADD) vs. Universal Technical Institute (NYSE:UTI)

Color Star Technology (NASDAQ:ADD) and Universal Technical Institute (NYSE:UTI) 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, institutional ownership, analyst recommendations, earnings and valuation.

Profitability

This table compares Color Star Technology and Universal Technical Institute’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
Universal Technical Institute	2.97%	10.55%	2.81%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Color Star Technology and Universal Technical Institute, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Color Star Technology	0	0	0	0	N/A
Universal Technical Institute	0	0	5	0	3.00

Universal Technical Institute has a consensus price target of $17.40, suggesting a potential upside of 16.00%. Given Universal Technical Institute’s higher probable upside, analysts clearly believe Universal Technical Institute is more favorable than Color Star Technology.

Institutional and Insider Ownership

3.4% of Color Star Technology shares are held by institutional investors. Comparatively, 75.7% of Universal Technical Institute shares are held by institutional investors. 38.9% of Color Star Technology shares are held by insiders. Comparatively, 27.6% of Universal Technical Institute shares are held 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.

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, Universal Technical Institute has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.

Valuation and Earnings

This table compares Color Star Technology and Universal Technical Institute’s top-line 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	0.21	-$37.85 million	N/A	N/A
Universal Technical Institute	$607.41 million	1.33	$12.32 million	$0.36	41.67

Universal Technical Institute has higher revenue and earnings than Color Star Technology.

Summary

Universal Technical Institute 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 Universal Technical Institute

Universal Technical Institute, Inc. provides transportation, skilled trades, and healthcare education programs in the United States. The company operates in two segments, UTI and Concorde. It offers certificate, diploma, or degree programs under various brands, such as Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology. The company also provides manufacturer specific advanced training programs, including student paid electives at its campuses; and manufacturer or dealer sponsored training at various campuses and dedicated training centers. It serves students, partners, and communities by providing education and support services in various fields. Universal Technical Institute, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.