Contrasting Chegg (NYSE:CHGG) & Sunlands Online Education Group (NYSE:STG)

Chegg (NYSE:CHGG) and Sunlands Online Education Group (NYSE:STG) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Valuation and Earnings

This table compares Chegg and Sunlands Online Education Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chegg $321.08 million 14.51 -$14.89 million $0.09 427.78
Sunlands Online Education Group $287.10 million 1.00 -$134.83 million ($0.86) -3.09

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

Analyst Ratings

This is a summary of recent ratings and price targets for Chegg and Sunlands Online Education Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chegg 0 1 11 0 2.92
Sunlands Online Education Group 1 1 0 0 1.50

Chegg presently has a consensus price target of $45.23, suggesting a potential upside of 17.47%. Given Chegg’s stronger consensus rating and higher probable upside, research analysts plainly believe Chegg is more favorable than Sunlands Online Education Group.

Profitability

This table compares Chegg and Sunlands Online Education Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chegg -3.27% 9.53% 3.40%
Sunlands Online Education Group -19.79% N/A -11.06%

Risk & Volatility

Chegg has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, Sunlands Online Education Group has a beta of 2.64, meaning that its share price is 164% more volatile than the S&P 500.

Insider & Institutional Ownership

25.9% of Sunlands Online Education Group shares are held by institutional investors. 5.8% of Chegg shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Chegg beats Sunlands Online Education Group on 12 of the 14 factors compared between the two stocks.

Chegg Company Profile

Chegg, Inc. operates direct-to-student learning platform that supports students on their journey from high school to college and into their career with tools designed to help them pass their test, pass their class, and save money on required materials. The company offers Chegg Services, which include digital products and services; and required materials that comprise its print textbooks and eTextbooks. Its digital products and services include Chegg Study, which helps students master challenging concepts on their own; Chegg Writing that enables automatically generate sources in the required formats, when students need to cite their sources in written work; Chegg Tutors that allow students find human help on its learning platform through a network of live tutors; and Chegg Math solver, which helps students to get math help through self-guided and individualized math solutions The company also offers Other Services, such as Test Prep, internships, college admission and scholarship services; rents and sells print textbooks and eTextbooks; and offers supplemental materials and textbook buyback services. Chegg, Inc. was founded in 2003 and is headquartered in Santa Clara, California.

Sunlands Online Education Group Company Profile

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.

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