Sunlands Online Education Group (NYSE:STG) and Tarena International (NASDAQ:TEDU) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, profitability, institutional ownership and valuation.

Profitability

This table compares Sunlands Online Education Group and Tarena Internationals net margins, return on equity and return on assets.

Sunlands Online Education Group has a beta of 2.57, indicating that its stock price is 157% more volatile than the S&P 500. Comparatively, Tarena International has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Sunlands Online Education Group and Tarena International, as provided by MarketBeat.com.

Tarena International has a consensus price target of $6.90, indicating a potential upside of 422.73%. Given Tarena Internationals higher possible upside, analysts plainly believe Tarena International is more favorable than Sunlands Online Education Group.

Insider and Institutional Ownership

25.9% of Sunlands Online Education Group shares are owned by institutional investors. Comparatively, 25.1% of Tarena International shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Sunlands Online Education Group and Tarena Internationals gross revenue, earnings per share and valuation.

Tarena International has higher revenue and earnings than Sunlands Online Education Group. Sunlands Online Education Group is trading at a lower price-to-earnings ratio than Tarena International, indicating that it is currently the more affordable of the two stocks.

Summary

Sunlands Online Education Group beats Tarena International on 8 of the 12 factors compared between the two stocks.

About Sunlands Online Education Group

Sunlands Technology Group, through its subsidiaries, provides online education services in the People's Republic of China. The company 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. Its STE courses cover 18 majors, including Chinese language and literature, law, pre-school education, project management, marketing, English, human resource management, business administration, business management, modern corporate governance, finance, financial management, advertising, accounting, energy management, administrative management, international trade, and computer information management. The company also provides professional certification preparation course offerings that cover various industries and professions, such as accounting, human resources, teaching, and finance. As of December 31, 2017, it had approximately 1,750 self-developed learning outcome trees covering 123,000 knowledge points. The company was formerly known as Sunlands Online Education Group. Sunlands Technology Group was founded in 2003 and is headquartered in Beijing, the People's Republic of China.

About Tarena International

Tarena International, Inc., through its subsidiaries, provides professional education services through full-time and part-time classes in the People's Republic of China. It offers education courses in 13 information technology (IT) subjects, such as Java, .NET, C++, software testing, embedded, PHP, Android, iOS, Linux and network engineering, Big Data, Web front-end development, VR/AR, and Python; and 3 non-IT subjects, including digital art, online sales and marketing, and accounting through live distance instruction, classroom-based tutoring, and online learning modules. The company also provides three kid education programs under the TongchengTongmei brand name. As of December 31, 2017, it had a network of 184 directly managed learning centers in 59 cities. Tarena International, Inc. was founded in 2002 and is headquartered in Beijing, the People's Republic of China.

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Contrasting Tarena International (NASDAQ:TEDU) and Sunlands Online Education Group (NASDAQ:STG) - Slater Sentinel