Marchex (NASDAQ:MCHX – Get Free Report) and Sunlands Technology Group (NYSE:STG – Get Free Report) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.
Profitability
This table compares Marchex and Sunlands Technology Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Marchex | -11.15% | -14.61% | -11.13% |
| Sunlands Technology Group | 18.56% | 39.98% | 17.58% |
Valuation and Earnings
This table compares Marchex and Sunlands Technology Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Marchex | $45.42 million | 1.75 | -$5.24 million | ($0.11) | -16.27 |
| Sunlands Technology Group | $288.84 million | 0.17 | $52.28 million | $3.86 | 0.94 |
Sunlands Technology Group has higher revenue and earnings than Marchex. Marchex 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.
Volatility and Risk
Marchex has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500. Comparatively, Sunlands Technology Group has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Marchex and Sunlands Technology Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Marchex | 1 | 1 | 0 | 0 | 1.50 |
| Sunlands Technology Group | 1 | 0 | 0 | 0 | 1.00 |
Insider & Institutional Ownership
73.5% of Marchex shares are held by institutional investors. Comparatively, 26.4% of Sunlands Technology Group shares are held by institutional investors. 23.5% of Marchex shares are held by insiders. Comparatively, 59.7% of Sunlands Technology Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Sunlands Technology Group beats Marchex on 8 of the 12 factors compared between the two stocks.
About Marchex
Marchex, Inc., a conversation intelligence company, provides conversational analytics and related solutions in the United States, Canada, and internationally. Its products include Marketing Edge that identifies which campaigns and channels are driving inbound conversations, evaluates what happens during those conversations, and closes the sales loop by connecting converted sales to marketing driven leads; Sonar Business Text Messaging, an artificial intelligence (AI) empowered intelligent workflow enabled mobile messaging solution that enables operations, sales, and marketing teams to communicate personally with field staff, prospects, and customers; Marchex Platform Services, a robust API-based conversation intelligence product that allows executives, sales, customer engagement, and marketing teams to apply Marchex AI to most any calls, regardless of communication platform, in order to identify actionable insights from conversations with their customers; Spotlight, an AI conversation analytics product for multi-location businesses; and Engage, a solution that provides locations with applications to enhance their overall performance. The company was incorporated in 2003 and is headquartered in Seattle, Washington.
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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