GigaMedia (NASDAQ:GIGM – Get Free Report) and Sunlands Technology Group (NYSE:STG – Get Free Report) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.
Risk & Volatility
GigaMedia has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, Sunlands Technology Group has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.
Profitability
This table compares GigaMedia and Sunlands Technology Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GigaMedia | -50.86% | -4.52% | -4.24% |
| Sunlands Technology Group | 18.56% | 39.98% | 17.58% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GigaMedia | 1 | 0 | 0 | 0 | 1.00 |
| Sunlands Technology Group | 1 | 0 | 0 | 0 | 1.00 |
Institutional & Insider Ownership
13.5% of GigaMedia shares are held by institutional investors. Comparatively, 26.4% of Sunlands Technology Group shares are held by institutional investors. 1.0% of GigaMedia shares are held by company insiders. Comparatively, 59.7% of Sunlands Technology Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares GigaMedia and Sunlands Technology Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GigaMedia | $3.47 million | 4.42 | -$1.55 million | ($0.15) | -9.25 |
| Sunlands Technology Group | $288.84 million | 0.18 | $52.28 million | $3.86 | 1.00 |
Sunlands Technology Group has higher revenue and earnings than GigaMedia. GigaMedia is trading at a lower price-to-earnings ratio than Sunlands Technology Group, indicating that it is currently the more affordable of the two stocks.
Summary
Sunlands Technology Group beats GigaMedia on 10 of the 11 factors compared between the two stocks.
About GigaMedia
GigaMedia Limited, together with its subsidiaries, provides digital entertainment services in Taiwan, Hong Kong, and Macau. The company owns and operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games, as well as provides services such as player clubs, tournaments, avatars, friends and family messenger and online chatting systems, customer service, mobile platform, and customer platform. It also offers MahJong, a traditional Chinese tile-based game; casual card and table games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and other casual games. In addition, the company provides role-playing and sports games, such as Tales Runner, a multi-player online obstacle running game; Yume 100, a story-based game that targets female players; Akaseka, a female-oriented game; and Shinobi Master New Link, a male-oriented game. GigaMedia Limited was founded in 1998 and is headquartered in Taipei, Taiwan.
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.
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