Reviewing Color Star Technology (NASDAQ:ADD) and 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 business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Earnings & Valuation

This table compares Color Star Technology and Universal Technical Institute’s gross 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
Universal Technical Institute	$607.41 million	1.25	$12.32 million	$0.36	39.31

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

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 Recommendations

This is a summary of recent ratings and target prices for Color Star Technology and Universal Technical Institute, as reported by MarketBeat.

	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 target price of $17.40, suggesting a potential upside of 22.97%. Given Universal Technical Institute’s higher probable upside, analysts plainly believe Universal Technical Institute is more favorable than Color Star Technology.

Institutional & 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 company insiders. Comparatively, 27.6% of Universal Technical Institute shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Color Star Technology has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500. Comparatively, Universal Technical Institute has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.

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.