Sunlands Technology Group (STG) vs. Its Competitors Head-To-Head Analysis

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

Risk and Volatility

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 peers 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 peers’ 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	-3.43%	-28.34%	2.46%

Institutional & Insider Ownership

26.4% of Sunlands Technology Group shares are held by institutional investors. Comparatively, 48.4% 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, 19.8% 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 is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Sunlands Technology Group and its peers, as reported 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	1436	3433	5284	197	2.41

As a group, “Diversified Consumer Services” companies have a potential upside of 60.00%. Given Sunlands Technology Group’s peers stronger consensus rating and higher probable upside, analysts plainly believe Sunlands Technology Group has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Sunlands Technology Group and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sunlands Technology Group	$288.84 million	$52.28 million	0.68
Sunlands Technology Group Competitors	$3.24 billion	$219.82 million	11.46

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

Summary

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

Sunlands Technology Group Company Profile

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.