Analyzing Sunlands Technology Group (STG) and The Competition

Sunlands Technology Group (NYSE:STG – Get Free Report) is one of 166 publicly-traded companies in the “Diversified Consumer Services” industry, but how does it compare to its peers? We will compare Sunlands Technology Group to similar companies based on the strength of its institutional ownership, profitability, dividends, analyst recommendations, valuation, earnings and risk.

Insider & Institutional Ownership

26.4% of Sunlands Technology Group shares are held by institutional investors. Comparatively, 49.0% of shares of all “Diversified Consumer Services” companies are held by institutional investors. 59.7% of Sunlands Technology Group shares are held by insiders. Comparatively, 19.9% of shares of all “Diversified Consumer Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Sunlands Technology Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sunlands Technology Group 17.60% 32.84% 15.90%
Sunlands Technology Group Competitors -3.20% -28.46% 2.44%

Volatility & Risk

Sunlands Technology Group has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, Sunlands Technology Group’s peers have a beta of 0.47, meaning that their average stock price is 53% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Sunlands Technology Group and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sunlands Technology Group 1 0 0 0 1.00
Sunlands Technology Group Competitors 1428 3419 5267 193 2.41

As a group, “Diversified Consumer Services” companies have a potential upside of 63.01%. Given Sunlands Technology Group’s peers stronger consensus rating and higher probable upside, analysts plainly believe Sunlands Technology Group has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Sunlands Technology Group and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Sunlands Technology Group $288.84 million $52.28 million 0.70
Sunlands Technology Group Competitors $3.24 billion $219.82 million 12.10

Sunlands Technology Group’s peers have higher revenue and earnings than Sunlands Technology Group. Sunlands Technology Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Sunlands Technology Group peers beat Sunlands Technology Group on 8 of the 13 factors compared.

About Sunlands Technology Group

(Get Free Report)

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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