Sunlands Technology Group (NYSE:STG) & Medirom Healthcare Technologies (NASDAQ:MRM) Financial Comparison

Medirom Healthcare Technologies (NASDAQ:MRM) and Sunlands Technology Group (NYSE:STG) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Medirom Healthcare Technologies and Sunlands Technology Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medirom Healthcare Technologies	1	0	0	0	1.00
Sunlands Technology Group	1	0	0	0	1.00

Earnings and Valuation

This table compares Medirom Healthcare Technologies and Sunlands Technology Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medirom Healthcare Technologies	$54.89 million	0.49	$980,000.00	N/A	N/A
Sunlands Technology Group	$1.97 billion	0.02	$52.28 million	$3.86	0.85

Sunlands Technology Group has higher revenue and earnings than Medirom Healthcare Technologies.

Institutional and Insider Ownership

26.4% of Sunlands Technology Group shares are held by institutional investors. 40.2% of Medirom Healthcare Technologies 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 company is poised for long-term growth.

Risk and Volatility

Medirom Healthcare Technologies has a beta of 1.04, suggesting that its share price is 4% more 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.

Profitability

This table compares Medirom Healthcare Technologies and Sunlands Technology Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medirom Healthcare Technologies	N/A	N/A	N/A
Sunlands Technology Group	18.56%	39.98%	17.58%

Summary

Sunlands Technology Group beats Medirom Healthcare Technologies on 8 of the 9 factors compared between the two stocks.

About Medirom Healthcare Technologies

MEDIROM Healthcare Technologies Inc. provides holistic healthcare services in Japan. It operates in two segments, Relaxation Salon and Digital Preventative Healthcare. The Relaxation Salon segment owns and franchises relaxation salons, which provide finger-pressure style bodywork therapy, stretch therapy, and posture and joint alignment, as well as physical therapy elements; and various individual services, including anti-fatigue therapy, athletic support therapy, slim-down therapy, and reflexology. As of December 31, 2021, this segment operated 312 relaxation salons under the Re.Ra.Ku and Ruam Ruam brand. The Digital Preventative Healthcare segment offers government-sponsored Specific Health Guidance program, utilizing Lav, its internally developed on-demand health monitoring smartphone application; MOTHER Tracker for fitness applications; and preventative healthcare services utilizing its digital application and devices. MEDIROM Healthcare Technologies Inc. also operates Re.Ra.Ku College that offers continuing training for franchise owners, home office staff, and salon staff covering topics, such as customer service, salon operations, and relaxation techniques located in the Odaiba area in Tokyo. The company was formerly known as MEDIROM Inc. and changed its name to MEDIROM Healthcare Technologies Inc. in March 2020. MEDIROM Healthcare Technologies Inc. was incorporated in 2000 and is headquartered in Tokyo, Japan.

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.