Comparing Sunlands Technology Group (STG) and Its Rivals

Sunlands Technology Group (NYSE:STG) is one of 166 public companies in the “Diversified Consumer Services” industry, but how does it contrast to its rivals? We will compare Sunlands Technology Group to similar businesses based on the strength of its valuation, dividends, risk, profitability, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of current recommendations for Sunlands Technology Group and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sunlands Technology Group	1	0	0	0	1.00
Sunlands Technology Group Competitors	1443	3447	5286	197	2.41

As a group, “Diversified Consumer Services” companies have a potential upside of 63.79%. Given Sunlands Technology Group’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Sunlands Technology Group has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares Sunlands Technology Group and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sunlands Technology Group	$288.84 million	$52.28 million	0.62
Sunlands Technology Group Competitors	$3.60 billion	$219.82 million	11.54

Sunlands Technology Group’s rivals have higher revenue and earnings than Sunlands Technology Group. Sunlands Technology Group is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

26.4% of Sunlands Technology Group shares are held by institutional investors. Comparatively, 49.0% of shares of all “Diversified Consumer Services” companies are held by institutional investors. 59.7% of Sunlands Technology Group shares are held by company insiders. Comparatively, 19.5% of shares of all “Diversified Consumer Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Sunlands Technology Group has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Sunlands Technology Group’s rivals have a beta of 0.50, indicating that their average share price is 50% less volatile than the S&P 500.

Profitability

This table compares Sunlands Technology Group and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sunlands Technology Group	17.60%	32.84%	15.90%
Sunlands Technology Group Competitors	-3.71%	-28.48%	2.39%

Summary

Sunlands Technology Group rivals beat Sunlands Technology Group on 8 of the 13 factors compared.

About Sunlands Technology Group

Sunlands Technology Group, through its subsidiaries, provides online education services through online and mobile platforms in the People's Republic of China. It offers various degree- and diploma-oriented post-secondary courses, including preparation courses for the self-taught higher education examination (STE) for learners pursuing associate diplomas or bachelor's degrees, as well as for the entrance examinations of Master of Business Administration programs. The company's STE courses include Chinese language and literature, law, pre-school education, marketing, English, human resource management, business administration, business management, modern corporate governance, financial management, advertising, accounting, administrative management, computer information management, finance, chain operation management, and visual communication and design and production. It also provides professional certification preparation courses in various industries and professions, such as accounting, human resources, teaching, and finance. In addition, the company offers education services through online and mobile platforms to adult students, pursuing post-secondary, and professional educations. The company was formerly known as Sunlands Online Education Group and changed its name to Sunlands Technology Group in August 2018. Sunlands Technology Group was founded in 2003 and is headquartered in Beijing, the People's Republic of China.