SunCar Technology Group (NASDAQ:SDA – Get Free Report) and Sunlands Technology Group (NYSE:STG – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.
Insider and Institutional Ownership
0.3% of SunCar Technology Group shares are held by institutional investors. Comparatively, 26.4% of Sunlands Technology Group shares are held by institutional investors. 22.2% of SunCar Technology Group shares are held by insiders. Comparatively, 59.7% of Sunlands Technology Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares SunCar Technology Group and Sunlands Technology Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SunCar Technology Group | $543.49 million | 0.08 | -$3.94 million | $0.03 | 14.01 |
| Sunlands Technology Group | $288.84 million | 0.13 | $52.28 million | $3.48 | 0.78 |
Sunlands Technology Group has lower revenue, but higher earnings than SunCar Technology Group. Sunlands Technology Group is trading at a lower price-to-earnings ratio than SunCar Technology Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for SunCar Technology Group and Sunlands Technology Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SunCar Technology Group | 1 | 1 | 1 | 0 | 2.00 |
| Sunlands Technology Group | 1 | 0 | 0 | 0 | 1.00 |
SunCar Technology Group presently has a consensus target price of $5.00, indicating a potential upside of 1,089.63%. Given SunCar Technology Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe SunCar Technology Group is more favorable than Sunlands Technology Group.
Profitability
This table compares SunCar Technology Group and Sunlands Technology Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SunCar Technology Group | 0.60% | 3.52% | 1.23% |
| Sunlands Technology Group | 17.60% | 32.84% | 15.90% |
Volatility and Risk
SunCar Technology Group has a beta of -0.1, suggesting that its share price is 110% less volatile than the S&P 500. Comparatively, Sunlands Technology Group has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.
Summary
Sunlands Technology Group beats SunCar Technology Group on 9 of the 14 factors compared between the two stocks.
About SunCar Technology Group
SunCar Technology Group Inc., through its subsidiaries, provides digitalized automotive after-sales service and online insurance intermediation services in the People's Republic of China. It operates through three segments: Insurance Intermediation Business; Automotive After-Sales Business; and Technology Business. The company offers customized after-sale services to banking, insurance companies, and other customer types; and auto mobile insurance comprising statutory automobile liability insurance and commercial automobile insurance. In addition, it provides auto insurance SaaS products and other technical services. The company is based in Shanghai, China.
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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