Reviewing Uber Technologies (NYSE:UBER) and Sunlands Technology Group (NYSE:STG)

Sunlands Technology Group (NYSE:STG) and Uber Technologies (NYSE:UBER) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sunlands Technology Group	18.99%	52.03%	18.14%
Uber Technologies	19.33%	43.63%	19.24%

Volatility and Risk

Sunlands Technology Group has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Uber Technologies has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Valuation and Earnings

This table compares Sunlands Technology Group and Uber Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sunlands Technology Group	$272.66 million	0.22	$46.87 million	$3.98	1.15
Uber Technologies	$52.02 billion	2.92	$10.05 billion	$4.71	15.66

Uber Technologies has higher revenue and earnings than Sunlands Technology Group. Sunlands Technology Group is trading at a lower price-to-earnings ratio than Uber Technologies, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Sunlands Technology Group and Uber Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sunlands Technology Group	1	0	0	0	1.00
Uber Technologies	1	6	33	1	2.83

Uber Technologies has a consensus price target of $104.61, indicating a potential upside of 41.83%. Given Uber Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Uber Technologies is more favorable than Sunlands Technology Group.

Institutional & Insider Ownership

26.4% of Sunlands Technology Group shares are held by institutional investors. Comparatively, 80.2% of Uber Technologies shares are held by institutional investors. 59.7% of Sunlands Technology Group shares are held by company insiders. Comparatively, 3.8% of Uber Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Uber Technologies beats Sunlands Technology Group on 13 of the 15 factors compared between the two stocks.

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.

About Uber Technologies

Uber Technologies, Inc. develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia excluding China and Southeast Asia. It operates through three segments: Mobility, Delivery, and Freight. The Mobility segment connects consumers with a range of transportation modalities, such as ridesharing, carsharing, micromobility, rentals, public transit, taxis, and other modalities; and offers riders in a variety of vehicle types, as well as financial partnerships products and advertising services. The Delivery segment allows to search for and discover restaurants to grocery, alcohol, convenience, and other retails; order a meal or other items; and Uber direct, a white-label Delivery-as-a-Service for retailers and restaurants, as well as advertising. The Freight segment manages transportation and logistics network, which connects shippers and carriers in digital marketplace including carriers upfronts, pricing, and shipment booking; and provides on-demand platform to automate logistics end-to-end transactions for small-and medium-sized business to global enterprises. The company was formerly known as Ubercab, Inc. and changed its name to Uber Technologies, Inc. in February 2011. Uber Technologies, Inc. was founded in 2009 and is headquartered in San Francisco, California.