H&R Block (NYSE:HRB – Get Free Report) and Sunlands Technology Group (NYSE:STG – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.
Risk and Volatility
H&R Block has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, Sunlands Technology Group has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for H&R Block and Sunlands Technology Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| H&R Block | 1 | 3 | 1 | 0 | 2.00 |
| Sunlands Technology Group | 1 | 0 | 0 | 0 | 1.00 |
Valuation & Earnings
This table compares H&R Block and Sunlands Technology Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| H&R Block | $3.95 billion | 1.42 | $733.60 million | $5.72 | 7.73 |
| Sunlands Technology Group | $288.84 million | 0.13 | $52.28 million | $3.48 | 0.83 |
H&R Block has higher revenue and earnings than Sunlands Technology Group. Sunlands Technology Group is trading at a lower price-to-earnings ratio than H&R Block, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
90.1% of H&R Block shares are owned by institutional investors. Comparatively, 26.4% of Sunlands Technology Group shares are owned by institutional investors. 1.4% of H&R Block shares are owned by insiders. Comparatively, 59.7% of Sunlands Technology Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares H&R Block and Sunlands Technology Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| H&R Block | 18.59% | -214.84% | 22.56% |
| Sunlands Technology Group | 17.60% | 32.84% | 15.90% |
Summary
H&R Block beats Sunlands Technology Group on 11 of the 14 factors compared between the two stocks.
About H&R Block
H&R Block, Inc. engages in the provision of tax return preparation solutions, financial products and small business solutions. The company was founded by Henry W. Bloch and Richard A. Bloch on January 25, 1955, and is headquartered in Kansas City, MO.
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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