Sunlands Technology Group (NYSE:STG – Get Free Report) and HealthStream (NASDAQ:HSTM – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.
Profitability
This table compares Sunlands Technology Group and HealthStream’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sunlands Technology Group | 18.56% | 39.98% | 17.58% |
| HealthStream | 6.39% | 6.47% | 4.44% |
Risk & Volatility
Sunlands Technology Group has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, HealthStream has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.
Insider and Institutional Ownership
Earnings & Valuation
This table compares Sunlands Technology Group and HealthStream”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sunlands Technology Group | $288.84 million | 0.17 | $52.28 million | $3.86 | 0.93 |
| HealthStream | $304.06 million | 2.68 | $18.34 million | $0.67 | 41.55 |
Sunlands Technology Group has higher earnings, but lower revenue than HealthStream. Sunlands Technology Group is trading at a lower price-to-earnings ratio than HealthStream, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations and price targets for Sunlands Technology Group and HealthStream, 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 |
| HealthStream | 0 | 3 | 0 | 0 | 2.00 |
HealthStream has a consensus target price of $27.00, suggesting a potential downside of 3.02%. Given HealthStream’s stronger consensus rating and higher possible upside, analysts plainly believe HealthStream is more favorable than Sunlands Technology Group.
Summary
Sunlands Technology Group beats HealthStream on 7 of the 13 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 HealthStream
HealthStream, Inc. provides Software-as-a-Service (SaaS) based applications for healthcare organizations in the United States. The company’s solutions help healthcare organizations in meeting their ongoing clinical development, talent management, training, education, assessment, competency management, safety and compliance, and scheduling, as well as provider credentialing, privileging, and enrollment needs. It offers hStream, a technology platform that powers a range of healthcare workforce solutions. The company provides its solutions to customers across a range of entities within the healthcare industry, including private, not-for-profit, and government entities, as well as pharmaceutical and medical device companies through its direct sales teams. The company was incorporated in 1990 and is headquartered in Nashville, Tennessee.
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