Sunlands Technology Group (NYSE:STG – Get Free Report) and WW International (NASDAQ:WW – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.
Analyst Recommendations
This is a summary of current recommendations and price targets for Sunlands Technology Group and WW International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sunlands Technology Group | 1 | 0 | 0 | 0 | 1.00 |
| WW International | 1 | 1 | 1 | 0 | 2.00 |
WW International has a consensus price target of $25.00, indicating a potential upside of 85.60%. Given WW International’s stronger consensus rating and higher possible upside, analysts clearly believe WW International is more favorable than Sunlands Technology Group.
Profitability
This table compares Sunlands Technology Group and WW International’s 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% |
| WW International | -56.84% | N/A | -0.32% |
Insider and Institutional Ownership
26.4% of Sunlands Technology Group shares are owned by institutional investors. Comparatively, 86.2% of WW International shares are owned by institutional investors. 59.7% of Sunlands Technology Group shares are owned by insiders. Comparatively, 0.4% of WW International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
Sunlands Technology Group has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, WW International has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500.
Valuation and Earnings
This table compares Sunlands Technology Group and WW International”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sunlands Technology Group | $288.84 million | 0.11 | $52.28 million | $3.48 | 0.70 |
| WW International | $710.64 million | 0.19 | -$112.25 million | ($10.13) | -1.33 |
Sunlands Technology Group has higher earnings, but lower revenue than WW International. WW International 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.
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.
About WW International
WW International, Inc. provides weight management products and services worldwide. It offers a range of nutritional, activity, behavioral, and lifestyle tools and approaches products and services. The company also provides various digital subscription products to wellness and weight management business, which provide interactive and personalized resources that allow users to follow its weight management program through its app and web-based platform; and allows members to inspire and support each other by sharing their experiences with other people on weight health journeys. In addition, it licenses its trademarks and other intellectual property in food, beverages, and other relevant consumer products and services, as well as provides publishing services. The company was formerly known as Weight Watchers International, Inc. and changed its name to WW International, Inc. in September 2019. WW International, Inc. was founded in 1961 and is headquartered in New York, New York.
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