Sunlands Technology Group (NYSE:STG) & WW International (NASDAQ:WW) Head-To-Head Survey

WW International (NASDAQ:WW) 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 institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Analyst Ratings

This is a summary of current ratings and target prices for WW International and Sunlands Technology Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WW International	1	1	1	0	2.00
Sunlands Technology Group	1	0	0	0	1.00

WW International currently has a consensus price target of $25.00, indicating a potential upside of 85.60%. Given WW International’s stronger consensus rating and higher probable upside, equities analysts clearly believe WW International is more favorable than Sunlands Technology Group.

Risk and Volatility

WW International has a beta of 1.73, suggesting that its share price is 73% 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 WW International and Sunlands Technology Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WW International	-56.84%	N/A	-0.32%
Sunlands Technology Group	17.60%	32.84%	15.90%

Institutional & Insider Ownership

86.2% of WW International shares are owned by institutional investors. Comparatively, 26.4% of Sunlands Technology Group shares are owned by institutional investors. 0.4% of WW International shares are owned by company insiders. Comparatively, 59.7% of Sunlands Technology Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares WW International and Sunlands Technology Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WW International	$710.64 million	0.19	-$112.25 million	($10.13)	-1.33
Sunlands Technology Group	$288.84 million	0.11	$52.28 million	$3.48	0.70

Sunlands Technology Group has lower revenue, but higher earnings 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 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.

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.